homeeconomy NewsEconomists believe the US Fed may hike a maximum of 50 bps in the next two policy meets
Economists believe the US Fed may hike a maximum of 50 bps in the next two policy meets
Hemant Mishra, Co-founder, and Group CIO of SCUBE Cap and CEO of SCUBE Asset Management said that the US Fed may hike a maximum of 50 bps in the next two meets.
All eyes will be on the key US Fed rate hike decision tonight. Market is expecting a 25-bps hike with dovish commentary. According to CNBC Fed survey, 86 percent expect rate cuts or a pause by July.
After the European Central Bank (ECB) announced a 50-bps rate hike as planned, there is a sign that Fed will likely raise rates in upcoming Federal Open Market Committee (FOMC) meet, as both stay on track to tame inflation. However, rate expectations have been rapidly quivering over the last few weeks.
In an interview with CNBC-TV18, Hemant Mishra, Co-founder, and Group CIO of SCUBE Cap and CEO of SCUBE Asset Management said that the US Fed may hike a maximum of 50 bps in the next two meets.
Also Read | Despite US Fed pressure and inflow challenges, here's why the Indian rupee is a bright spot
He said, “The tighter lending standards that will happen on the back of the run that some of the banks have seen, anyway, would have meant a hike between 50 bps and 150 bps. So, the Fed is not required to hike much more than 25 bps and maybe another 25 bps later. But as I mentioned, it's a marathon. It's not a sprint. It makes sense for them to do a 25 bps and then pause.”
Former RBI Governor Raghuram Rajan, in an exclusive interview with CNBC-TV18, said that a pause in the next Fed meeting looks like a low probability and 25 bps hike still looks like a strong possibility, 50 bps is off the table.
Also Read | Raghuram Rajan says Fed going for 25 bps rate hike a strong possibility amid bank crises
Meanwhile, Srinivasan Varadarajan, Non-Executive Chairman of Union Bank of India said that the central banks are playing a critical role in safeguarding the financial system. They are providing backstops to ensure that things don't worsen from here. Their measures are aimed at preventing a complete collapse of the market.
Also Read | Central banks, like US Fed and RBI, proactively providing backstops to curb recession impact
For more details, watch the accompanying video
(Edited by : Pradeep John)
First Published: Mar 22, 2023 8:04 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP's Hindi heartland dominance faces test in phase 3 polls
May 2, 2024 9:14 PM
Lok Sabha Election: Re-elections at a Ajmer booth after presiding officer misplaces register of voters
May 2, 2024 4:54 PM