Global investment banks expect the final US policy rate, which will accelerate monetary tightening, to be in the range of 5 to 5.25%.
The Bank of Korea announced on the 12th that its New York office surveyed 12 investment banks on the 4th of the final US official interest rate estimate, and four out of three responded that they were between 5.00 and 5.25%. Three positions responded at 4.75 to 5.00%, and two positions each expected 4.50 to 4.75% and 5.25 to 5.50%.
The remaining investment bank projected that the final official interest rate in the US would rise sharply to 5.50-5.75%. Seven, more than half, expected the US policy rate to rise above 5%.
This is well above the 4.6% rate next year presented in the September dot chart (a chart showing future Fed interest rate expectations).
Earlier, the US central bank (Fed) took the giant step four times in a row to raise its key interest rate by 0.75 percentage point (p) from 3-3.25% in November to 3 .75-4%. Shortly after the rate decision, Fed Chairman Jerome Powell hinted that the final rate level could be higher and said it was premature to talk about a rate hike.
“Monetary policy uncertainties, such as the level of the final policy rate, are still high,” the BOK said.
Chae Seon-hee, Hankyung.com reporter [email protected]
