OctaFX | OctaFX Forex Broker
Open trading account

FOMC: Rate hike, not this time – BNP Paribas

FXStreet (Delhi) – Alexandra ESTIOT, Research Analyst at BNP Paribas, suggests that today’s FOMC meeting is one with forecasts’ update and press brief, a good opportunity for policy change but necessary conditions are not always sufficient, and we do not expect the Fed to change its policy stance.

Key Quotes

“August’s financial turmoil is not the reason why. Admittedly, jittery financial markets reminded Fed officials that policy decisions can have huge impacts. This is reason for the Fed to try and be crystal-clear about future steps, not to postpone decisions otherwise seen as necessary.”

“Fed officials are increasingly uncomfortable with the zero-rate policy, especially with the unemployment rate down to the NAIRU estimated level. Still, with core inflation stable and low, an expensive dollar and no sign of accelerating wages, there is no reason to rush the normalisation.”

EUR/USD a tad weaker, deflates to 1.1310

The single currency is giving away part of its gains vs. the dollar today, sending EUR/USD back to the 1.1310 area...
Read more Previous

GBP/USD: Bulls defending 1.55 handle

The GBP/USD pair failed near three-week highs and receded gains in the mid-European trades, as markets digest the latest UK retail sales number while gradually shifting focus towards the Fed's crucial rate decision.
Read more Next
Start livechat