Fed: Market prices slightly more than a 50% chance of a 25bps hike by year-end - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, suggests that tonight, the US FOMC will meet and it is almost certainly not going to announce any rate changes.

Key Quotes

“It will also likely provide a conciliatory tone to avoid creating further volatility ahead of the UK referendum. It will also likely show further downgrades to its ‘dot point’ projections of the future Fed funds rate track. It is hard to see the market being prompted into increasing expectations for near-term Fed activity. Currently the market prices only slightly more than a 50% chance of a 25bps hike by year-end.”