Global Interest Rates Rising Faster than Expected, Pivot Unlikely in 2023
Global interest rates have risen more rapidly than expected in the past two months, and Federal Reserve and ECB policy rates are now likely to peak at a later date and higher level than anticipated in Fitch Ratings’ September 2022 Global Economic Outlook (GEO). Stubbornly high inflation outturns and a hardening of central bank resolve to bring inflation down make a pivot back towards rate cuts in 2023 unlikely. Fitch now expects the Fed Funds rate to rise by 50bp to 4.5% at the December FOMC meeting and then by 25bp at each of the February and March 2023 meetings. We expect rates to remain at 5.0% through the rest ... (full story)
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