1 Oct 2014
Fed may continue to err on the side of caution - Standard Chartered
FXStreet (Bali) - Standard Chartered expects the first rate hike in the US at the June 2015 meeting, followed by a very gradual tightening pace of 100bps/year until a cycle high of 3.0%.
Key Quotes
"We think the exit from the Fed’s ultra-accommodative stance will be very gradual. Chair Yellen (and before her, Bernanke) has highlighted the dangers of tightening policy too early; the Fed may continue to err on the side of caution. The final reduction of its QE programme should come at the October FOMC meeting, as the FOMC has already telegraphed."
"We expect the first rate hike at the June 2015 meeting, followed by a very gradual tightening pace of 100bps/year until a cycle high of 3.0%. As an aside, the Bank of England (BoE) will probably have ‘broken the ice’ with a rate hike before the Fed; we expect it to hike in Q1-2015."
Key Quotes
"We think the exit from the Fed’s ultra-accommodative stance will be very gradual. Chair Yellen (and before her, Bernanke) has highlighted the dangers of tightening policy too early; the Fed may continue to err on the side of caution. The final reduction of its QE programme should come at the October FOMC meeting, as the FOMC has already telegraphed."
"We expect the first rate hike at the June 2015 meeting, followed by a very gradual tightening pace of 100bps/year until a cycle high of 3.0%. As an aside, the Bank of England (BoE) will probably have ‘broken the ice’ with a rate hike before the Fed; we expect it to hike in Q1-2015."