(Reuters) – Most major U.S. banks expect the Federal Reserve to deliver another 25-basis-point rate hike in July after the central bank signaled that borrowing costs may need to rise by as much as half a percentage point by the end of the year.
The Fed’s main rate now stands at 5.00% – 5.25% range. Money markets are currently pricing in a nearly 77% chance of a 25 bps rate hike in July.
Following are forecasts from some big U.S. banks and their global counterparts:
Brokerage July September Comments Terminal
Rate
Expectati
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on
BofA 25 bps 25 bps 5.5% –
hike hike 5.75%
Citigroup 25 bps 25 bps Moved expectation 5.5% –
hike hike for June hike to 5.75%
September
JP Morgan 25 bps No hike 5.25%
hike 5.5%
Goldman 25 bps No hike Sees a possible 5.25% –
Sachs hike second hike as more 5.50%
likely in
November than
September
Morgan No hike 5.375%
Stanley 25 bps
hike
Deutsche 25 bps No hike 5.3%
Bank hike
UBS 25 bps
hike
(Compiled by Broker Research team in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)