Bangkok, July 24 - Kasikorn Research Center expects the Federal Reserve Board (FOMC) meeting on July 25-26, 2023. The Fed is expected to raise the policy rate by 0.25 percent.

Kasikorn Research Center estimates that at the FOMC meeting on July 25-26, it is expected that the Fed will raise the policy rate by 0.25 percent to 5.25-5.50 percent. After the Fed signaled through the Fed Dot Plot at the June FOMC meeting that the Fed is likely to raise interest rates two more times this year, although the June 2023 headline inflation continued to decline to 3.0 percent, it remained above the 2 percent target. 0%, while core inflation and Core Price Index from Personal Consumption Expenditure (Core PCE) remained high. As a result, the Fed's goal of controlling inflation has not yet been completed. While the US economic numbers the latest release Even if it starts to send a signal to reduce heat. But the labor market is still quite strong. This is a factor that encourages the Fed to continue to raise interest rates in the upcoming meeting. Among the possibilities that the Fed may lead the US economy towards soft landing, or a reduction in inflation by the US economy. Not into a recession that is more

However, the market sees that the policy rate hike at the upcoming meeting may be the last hike in this upward cycle. due to US inflation has continued to decelerate while, although the US labor market will still be quite strong But there is still a possibility that the US economy in the following quarters may slow down from the previous quarter. As a result, most markets assume that the Fed may raise interest rates for the last time at the meeting on July 25-26, 2023. However, Kasikorn Research Center views that there is still a possibility that the Fed may continue to raise interest rates as signaled. This depends on new economic data coming out, especially if core inflation and wages do not fall quickly. And if the labor market does not reduce the heat as it should. .–Thai News Agency

Source: Thai News Agency