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Analysts at Danske Bank note that the US Fed stayed on hold and made no major change to the policy signals in the statement, which means the Fed is still on track to hike rates again in December.

Key Quotes

“A few in the market had speculated that the Fed would cut interest on excess reserves (IOER) by 5bp at this meeting, as the effective Federal funds rate had crept higher leading up to the meeting. However, the Fed could instead make an adjustment hike of 15-20bp of IOER in December following a widely expected 25bp hike of its target rate.”