Bank of America expect FOMC hold in November & a ‘close call’ December interest rate hike

Bank of America analysts are not entirely convinced of a December rate hike but say there will be no move in November.

  • on hold at the October 31 / November 1 meeting
  • will hike by 25bp if the economic data holds up
  • “We shift the last rate hike in our forecast out to December. We think the strong September data keep another hike in play. But it is a close call”
  • “There are meaningful risks that the Fed will either delay the last hike into 2024 or not hike again”

CME ‘FedWatch’ sees no hike in November (at 98.4% probability) and only a 24% chance of a December hike:

This article was written by Eamonn Sheridan at www.forexlive.com. Source