Factbox: Wall Street banks expect Fed to hike rates in July
June 15, 20236:44 AM EDT
Updated a day ago
June 15 (Reuters) – A few major U.S. banks expect the Federal Reserve to deliver another 25-basis-point rate hike in July after the central bank on Wednesday signaled that borrowing costs may need to rise by as much as half a percentage point by the end of the year.
Money markets are currently pricing in a nearly 72% chance of a 25 bps rate hike in July, and the first rate cut in March next year.
Following are forecasts from some big U.S. banks and their global counterparts:
| Brokerage | July | September | Comments | Terminal Rate Expectation |
| BofA | 25 bps hike | 25 bps hike | 5.5% – 5.75% | |
| Citigroup | 25 bps hike | 25 bps hike | Moved expectation for June hike to September | 5.5% – 5.75% |
| JP Morgan | 25 bps hike | No hike | 5.25% 5.5% | |
| Goldman Sachs | 25 bps hike | No hike | Sees a possible second hike as more likely in November than September | 5.25% – 5.50% |
| Morgan Stanley | No hike | No hike | “In the very near-term, the bar to a July hike is not insurmountable but we think would be an Olympic feat” | 5.1% |
| Deutsche Bank | 25 bps hike | No hike | 5.3% | |
| UBS | 25 bps hike |
Compiled by Broker Research team in Bengaluru; Editing by Sherry Jacob-Phillips
Source: Reuters
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