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Thursday, 13 October 2016

Despite debate, December rate hike still seen as likely

Fed policymakers closer to rate hike, but inflation doubts remain -Fed meeting minutes: Minutes from the 20-21 September policy meeting of the US Federal Reserve indicate a split over the timing of any possible rate hike, Reuters reports. “In the minutes, both voting members and the wider group were divided on how much more they can allow the labor market to strengthen before raising rates,” the newswire notes, adding that analysts have all but ruled out the possibility of a November rate hike, with traders putting at 70% the probability of a hike in December.

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