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US data flow backs the case for 75bp
It has been a volatile week for interest rate expectations ahead of the July 27th FOMC meeting, but the final sets of data showing reasonable retail sales yet falling inflation expectations, lower import price inflation and the second consecutive fall in manufacturing suggests a 75bp hike is the most likely outcome. Inflation fears show signs of easing: There has been growing speculation over a possible 100bp hike from the Fed later this month following the 9.1% inflation print and the Bank of Canada opting for a surprise 100bp hike. However, we have had quite an array of US numbers this morning, which fit with the ... (full story)