The Fed may raise interest rates by 0.50% on Dec 14.
On December 14, the Federal Reserve may raise interest rates by 0.50%, and Bank Negara may follow in January.
The Federal Reserve (FED) will meet on December 14 and is widely expected to raise interest rates by 0.50%, or from the current target range of 3.75 to 4.00% to 4.25 to 4.50%.
In October, the US Consumer Price Index (CPI) increased 7.70% year on year, while the core CPI increased 6.30% year on year. The market expects the Fed to slow the pace of raising interest rates, but to keep doing so until the CPI index returns to normal levels.
Furthermore, experts predict that the European Central Bank will raise interest rates by 0.75% on December 15, the Bank of England will raise rates by 0.75% on December 15, and the RBA will raise rates by 0.25% on December 6. On December 7, the Bank of Canada is expected to raise interest rates by 0.50%.
Many major economies’ central banks are still raising interest rates, and Bank Negara Malaysia is unlikely to stop raising rates. As a result, it is widely expected that Bank Negara will raise interest rates twice more in 2023, each time by 0.25%. The next monetary policy meeting of Bank Negara will be held on January 19.
