A lower-than-expected rise in US consumer prices in mid May was a timely reminder of the unpredictability of US monetary policy. Banks are split between anticipating a reduction in interest rates next month; reckoning on a period of stability; or thinking that the US Federal Reserve will hike rates at least once more this year.
BNP Paribas reckons May’s hike will be the last of the cycle with previous increases already beginning to weigh on the real economy.
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