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16 Mar 2015
Rates lift-off expected in June – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank joined the consensus for a first rate hike by the Fed in the June meeting.
Key Quotes
“The latest stream of soft data from the US prompts us to revise down our GDP growth forecast for Q1 to 1.7% q/q AR from 2.7% previously. For the year as a whole, we now expect GDP growth of 2.8%, down from 3.0%”.
“While we expect the Fed to start its hiking cycle in June this year, longer-term interest rates should be capped by global monetary easing which should support the housing market in particular”.
“Hence, we continue to see GDP growth solidly above potential this year and we think that developments in the labour market are more important to the Fed than short-term weakness in GDP growth”.
“We thus stick to our view that the Fed will deliver its first rate hike in June”.
Key Quotes
“The latest stream of soft data from the US prompts us to revise down our GDP growth forecast for Q1 to 1.7% q/q AR from 2.7% previously. For the year as a whole, we now expect GDP growth of 2.8%, down from 3.0%”.
“While we expect the Fed to start its hiking cycle in June this year, longer-term interest rates should be capped by global monetary easing which should support the housing market in particular”.
“Hence, we continue to see GDP growth solidly above potential this year and we think that developments in the labour market are more important to the Fed than short-term weakness in GDP growth”.
“We thus stick to our view that the Fed will deliver its first rate hike in June”.