30 Jul 2015
Bottom line: September rate hike on track - BBVA
FXStreet (Guatemala) - Kim Chase, analyst at BBVA research explained that the FOMC is close to achieving economic conditions under their data-dependent strategy.
Key Quotes:
"Important data releases throughout the next few months, including employment and inflation reports for July and August, will be closely monitored. Assuming that economic activity does not weaken, we maintain our expectations for the first rate hike in September. There is still a risk that global pressures could further delay the FOMC’s plans if conditions deteriorate and volatility increases in the inter meeting period."
"However, in delaying liftoff the Fed risks losing credibility. At this point it seems that they are ready to get over the first rate hike and deal with a more gradual pace of normalisation thereafter."
Key Quotes:
"Important data releases throughout the next few months, including employment and inflation reports for July and August, will be closely monitored. Assuming that economic activity does not weaken, we maintain our expectations for the first rate hike in September. There is still a risk that global pressures could further delay the FOMC’s plans if conditions deteriorate and volatility increases in the inter meeting period."
"However, in delaying liftoff the Fed risks losing credibility. At this point it seems that they are ready to get over the first rate hike and deal with a more gradual pace of normalisation thereafter."