The Fed will postpone rate increases to 2018


Next week the Fed will celebrate a significant meeting. Possibly announces the beginning of the process of reduction of its balance sheet already in October, following the strategy that it anticipated in June. When it comes to interest rates, there will be no changes and, also, expect that a strong division is produced when it comes to its predictions around the end of this year, although with a clear turn to postpone rises to 2018 (the market pays contributions, at this time, with a probability of the 50 % the possibility of an additional rise this year).

On the other hand, the Bank of England has celebrated its monetary policy meeting of September, generating perspectives of a monetary tightening in the next few months, upon affirming that would be able to be appropriate to go something more there of which it pays contributions the market and when foreseeing that the inflation will remain above its objective in three next few years. The reaction of the futures has been significant, when happening of quoting the rate increase in 2019 to March 2018.

Source: Bankia Studies