The European Central Bank (ECB), The Bank Of England (BoE) And The Swiss National Bank (SNB) Are Also Expected To Hike The Rates By 50bp

As expected, the Fed raised its interest rates by 50bp to 4.25/4.50% range, the dot plot showed that the Fed officials’ median forecast for the peak Fed rate rose to 5.1%.

Forecasts

Plus, the distribution of rate forecasts skewed higher, with 7 officials out of 19 predicting that the rates could rise above 5.25%.

Moreover, the inflation forecast for next year was revised higher DESPITE the latest decline in inflation.

Read next: Given the peculiarities of the US labor market and the high labor mobility, the acceptable unemployment rate is considered to be 5.0%| FXMAG.COM

And the median rate forecast for 2024 was revised higher to 4.1%.
In summary, the FOMC message was very clear: the Fed is not ready to stop hiking rates - even though they will be hiking by smaller chunks.

Today's decisions

Today, the European Central Bank (ECB), the Bank of England (BoE) and the Swiss National Bank (SNB) are also expected to hike the rates by 50bp to tame inflation in Europe.

Watch the full episode to find out more!

• 0:00 Intro
• 0:36 Powell dashes dovish Fed hopes
• 2:40 Stocks fell, and could fall lower
• 4:30 USD gained, but may not gain much
• 5:33 ECB to hike by 50bp
• 7:27 BoE to hike by a dovish 50bp
• 8:50 SNB to hike by 50bp, as well!

But a 50bp hike is not the same for all, as they don’t have the same inflation levels!

Ipek Ozkardeskaya

Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

Read next: From the fundamental point of view, these facts may become a game changer, sending the EUR/USD pair to the parity level | FXMAG.COM

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