• The Federal Reserve is likely to increase interest rates by 25 basis points in their upcoming meeting on July 26th.
• The European Central Bank is also forecasted to raise the rates by 25 basis points in their next meeting.
• Analysts suggest that the probability of an additional rate hike in September is 18%.
Federal Reserve to Increase Interest Rates
The Federal Reserve’s meeting scheduled for July 26th will likely result in a 25 basis point increase, raising the federal funds rate to span from 525-550 bps. Moreover, there are indications of another 25 bps rate hike at the September 20th meeting, with an 18% chance according to current projections.
European Central Bank Rate Hike Forecast
The European Central Bank (ECB) is expected to follow suit and deliver a similar verdict; a 25 basis point increase which would bring their interest rate up to 425 bps.
Analysis of Probabilities
As suggested by a formidable 99.8% probability, the Federal Reserve’s July 26th decision will most likely lead to an increase in interest rates. Furthermore, the chances of an extra rate hike in September are also on an upward trajectory with an 18% probability.
Impact of Interest Rate Adjustments
Interest increases could have far reaching implications for consumers and businesses alike; it could potentially impact borrowing costs as well as savings returns for individuals and companies alike. Thus, it is important to stay abreast with these developments as they unfold over time.
In summary, both the Federal Reserve and European Central Bank are forecasted to raise interest rates soon, with probabilities indicating that further hikes may be on the horizon as well. It remains unclear what repercussions such decisions may have on individuals and corporations throughout the world; however, staying up-to-date with these developing trends could prove beneficial when it comes time to make financial planning decisions accordingly.