After Wednesday’s FOMC statement, analysts at BBVA now expect the US central bank to raise rates in 2025. They see that the risks of low policy rates for even a longer period remain high. Key Quotes: “The change in forward guidance signals that interest rates will remain at the zero lower bound indefinitely and they will remain below neutral even after goals are reached.” “Based on the latest statement and changes to the committee’s Longer-Run Goals and Monetary Policy Strategy, we have revised our forecast for the policy rates with the first rate increase occurring in 2025. This implies that long-term yields will remain well below historical averages for a prolonged period. Should economic conditions surprise on the upside, the policy rate increase may happen sooner, possibly in 2024. However, given the long-lasting effects from Covid-19, elevated policy uncertainty, and the expected moderate improvement in labor market conditions, inflation and inflation expectations that follow deep recessions, the risk of low policy rates for an even a longer period remain high.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Oil Price Analysis: Massive move in WTI as JMMC meeting proves pivotal FX Street 1 year After Wednesday’s FOMC statement, analysts at BBVA now expect the US central bank to raise rates in 2025. They see that the risks of low policy rates for even a longer period remain high. Key Quotes: “The change in forward guidance signals that interest rates will remain at the zero lower bound indefinitely and they will remain below neutral even after goals are reached.” “Based on the latest statement and changes to the committee’s Longer-Run Goals and Monetary Policy Strategy, we have revised our forecast for the policy rates with the first rate increase occurring in 2025. This implies that… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
