With renewed tensions in the Middle East and rising crude oil prices, a growing number of brokerages believe the Federal Open Market Committee could decide on a rate hike at this week's meeting. While most major firms still expect rates to remain unchanged, BofA Global Research and Deutsche Bank see three and two more hikes respectively starting in September. As Brent crude touched one hundred dollars a barrel, concerns have mounted over aggressive rate increases to curb inflation. UBS Global Research said it would not be surprised if the Fed hikes to demonstrate its commitment to fighting inflation, while Citigroup noted it would be difficult to justify a hike based on declining market-based inflation expectations. Traders are now pricing in about a thirty-two percent chance of a hike this week, up from around ten percent two weeks ago.
Citigroup Inc.Citigroup noted it would be difficult to justify a hike based on declining market-based inflation expectations, but the article does not indicate a clear impact on the bank.
Deutsche Bank AktiengesellschaftDeutsche Bank expects two more rate hikes starting in September, but the article does not indicate a clear impact on the bank.