"I expect them to raise rates this year, probably in December," says Peter Hooper of Deutsche Bank. The Fed, in its meet on Wednesday, sounded more hawkish.
The experts around the globe believe that the ground for US Federal Reserve to hike rate has strengthened and it is likely to move in December.
The US Federal Reserve on Wednesday kept the interest rate unchanged, but hinted at a possible hike in December this year.
"I expect them to raise rate this year, probably in December," says Peter Hooper of Deutsche Bank. The Fed, in its meet on Wednesday, sounded more hawkish.
The Fed not moving rates is positive for the emerging markets, says Geoffrey Dennis of UBS. Global markets are now less scared about Fed’s movement in future.
The momentum is shifting towards a hike, Hooper says, adding that the Fed chair Janet Yellen is not keen to wait too far for it.
The Federal Open Market Committee (FOMC) meeting lined up in November will bring more clarity on any hike that may happen this year. Not much room is there for the Fed to lower its projection of two hikes in 2017, says Hooper.
UBS is now focusing on markets like Korea, Taiwan and India and not markets like Brazil, which have rallied already this year.
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First Published on Sep 22, 2016 07:41 am