September hike seems more unlikely now – Danske Bank

By FXStreet FXStreet (Edinburgh) – According to Analyst Kristopher Lomhot at Danske Bank, a Fed’s lift-off this month would not be advisable.

Key Quotes

“Sentiment has also been aided by the World Bank chief economist Kaushik Basu urging the Federal Reserve to postpone the first rate hike”.

“According to Basu the Fed risks triggering ‘panic and turmoil’ in emerging markets should the committee members opt for a September hike”.

“The comments follow similar advice from the IMF in recent weeks”.

“Currently markets price a c.30% probability of a hike at the 16-17 September meeting – down from roughly 35% last week. Our macroeconomists expect a hike this year, namely at the December meeting”.
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Source:: FX Street