UBS Expects US Interest Rate Hikes in December and March
UBS Bank forecasts US interest rate increases in December and March due to inflation.
Translated by Qiyas from الجريدة — Original source
The Wealth Management unit at UBS has forecast that the Federal Reserve will raise interest rates in December and March, extending the path of monetary tightening into next year amid persistent and broadening inflationary pressures.
Andrew Dobkinski, the bank’s economist, said in a note issued on Wednesday that the acceleration in goods inflation, coupled with continued rises in service prices, increases the likelihood that U.S. interest rates will remain elevated for longer, according to Reuters.
The Fed is scheduled to hold its next meeting on October 27 and 28, while markets are pricing in a 70% probability that interest rates will be left unchanged, according to the CME FedWatch tool.
