BNP Paribas and Macquarie have become two of the latest banks to push back their expectations of US interest rate cuts.
A team of economists at French bank BNP said in a note that they expect the first Federal Reserve rate cut to take place in December, later than previously anticipated.
“In light of stronger-than-expected US inflation data to start the year amid still-robust growth, we are changing our Fed call,” they wrote late on Friday evening.
Macquarie also signalled in a note the same day that it now anticipates the first rate cut to occur in 2025, later than previous expectations for a quarter-point rate cut in December.
Traders in the futures market are still betting on between one and two rate cuts this year.
This article was originally published by Www.ft.com. Read the original article here.