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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Banks

Fed looks likely to hike US interest rates as minutes hint at imminent move

The US Federal Reserve looks poised to hike its key interest rate next week, according to economists reading the runes from the last gathering of the Open Markets Committee.

Minutes highlighted discussions among some officials at the central bank's recent meeting who argued for a quarter-percentage point increase in June.

While this perspective did not carry the majority, it signals a strong potential for an imminent rate hike, possibly twice within the year, analysts said.

Experts said it is rare to see the Fed air its disagreements publicly in this way. In doing so, commentators reckon they are softening the market up for a July rate hike.

The US benchmark rate of interest stands at 5.1% - a high not seen in a decade and a half. However, inflation shows no signs of dying down to more normal levels even after a significant ratcheting up of the cost of borrowing. Economists expect two further rate hikes this year.

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