Reuters Breakingviews Analysis: Markets May Be Overestimating Rate Hikes by the Federal Reserve, ECB, and Bank of England
Reuters Breakingviews notes that markets currently anticipate the Federal Reserve will raise interest rates four times over the next year, each by 25 basis points, bringing the rate to approximately 4.6%. Traders also expect the European Central Bank's rate to reach 3.25% and the Bank of England's to hit 4.75%. The analysis suggests these expectations might be too high, citing relatively contained underlying inflation and the potential for high energy prices to ultimately dampen economic growth rather than trigger persistent inflation.
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Source:X@DeItaone · Source Link
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