The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo Acquire Licensing Rights
Sept 14 (Reuters) – Citigroup now expects the U.S. Federal Reserve to raise its key interest rate by 25 basis points (bps) in November, compared with its previous forecast of a September hike.
According to Citigroup economists led by Andrew Hollenhorst, the recent inflation data raised expectations that the Fed would “pause” during the policy meeting next week.
“The slightly stronger-than-expected reading is likely to keep the Fed leaving the 2023 median ‘dot’ unchanged,” Citigroup economists wrote in a note dated Wednesday.
Traders see a 97% chance of the Fed holding rates in September and a near 60% likelihood of a November pause, the CME FedWatch Tool data showed.
Reporting by Subhadeep Chakravarty in Bengaluru; Editing by Krishna Chandra Eluri and Shilpi Majumdar
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Source: reuters.com
