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UBS Federal Reserve's rate cut expectations have been pushed back to 2027; the central bank is expected to send a hawkish signal at this week's meeting
Svmuu News UBS Global Wealth Management has pushed back its expectations for Federal Reserve interest rate cuts to March and June 2027 and no longer anticipates any rate cuts this year. The firm said the move reflects its assessment that this week’s meeting will send a hawkish signal. UBS Federal Reserve is now expected to cut rates by 25 basis points in March and June of next year, compared with the previous forecast of 25-basis-point cuts in December 2026 and March 2027. Federal Reserve The RBA will announce its interest rate decision this week—the first meeting chaired by new Governor Wash—and the market widely expects rates to remain unchanged.UBS Global wealth management analysts stated in a report dated June 15: “Although Wash has previously expressed a relatively dovish stance, we expect the tone of this meeting to be more hawkish, both in the statement and the dot plot.” UBS They noted that major central banks will not rush to adopt a more dovish policy stance simply because of the U.S.-Iran agreement. Instead, as the situation unfolds and data released in the coming months gradually reveals whether the energy shock is triggering a second round of inflationary pressures, central banks are likely to maintain a cautious stance. (Jin Shi)
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