homevideos Newsmarket NewsNomura expects US Fed to raise interest rates by 50 bps in March; 5 hikes coming in year, says brokerage

Nomura expects US Fed to raise interest rates by 50 bps in March; 5 hikes coming in year, says brokerage

The Fed will hike in March, but maybe not by 50 basis points. Also, the minutes don't indicate the 7 rate hikes that markets were pencilling in after Fed member St. Louis Federal Reserve President James Bullard's statements. Speaking to CNBC-TV18, Rob Subbaraman of Nomura said US Fed is gearing up for an aggressive tightening and they expect a 50 basis point hike at the March meeting and 5 more hikes this year.

By CNBC-TV18 Feb 17, 2022 12:57:40 PM IST (Updated)

Nomura expects a 50 basis point hike at the March meeting of the US Federal Reserve with five hikes overall in the year, which is 150 bps.

“The Fed, I think is gearing up for an aggressive tightening. We actually at Nomura expect a 50 basis point hike at the March meeting, even though the consensus is 25. We expect five more hikes this year so 150 basis points all up this year,” Rob Subbaraman, Head of Global Macro Research at Nomura told CNBC-TV18.

There is a consensus that the Fed will hike interest rates in March given the inflation situation. However, it may not raise it by 50 basis points. Also the minutes don't indicate the 7 rate hikes that markets were pencilling in after Fed member St. Louis Federal Reserve President James Bullard's statements.