Additionally, the group predicted one
more rate hike between now and the end of 2019 than it had previously.
Not exact matches
The Bank didn't give its own view on how many
more rate hikes it intends, but financial markets are implying only two
more hikes between now and 2020.
The dollar index against the world's major currencies is at a four month high with the interest
rate gap set to widen
between the dollar and euro - zone as the US Federal Reserve plans several
more rate hikes this year.
While we expect one
more interest
rate hike this year given Fed Chairwoman Janet Yellen's most recent comments at Jackson Hole, financials may benefit from widening net interest margins (the spread
between what banks make on loans and what they pay for deposits.)
The benchmark interest
rate range is now
between 1 % — 1.25 %, with
more Fed
hikes likely to come.
More rate hikes could close the gap
between short - term and longer - term mortgages and start to push consumers away from variable and into fixed mortgages where they would be insulated from the immediate impact of further increases.
«
Between prospects of deregulation, global political uncertainty and the possibility of significant
rate hikes, lenders and borrowers are acting with
more caution,» says Justin Bakst, director of capital markets at research firm CoStar.
Add a second potential Federal Reserve
rate hike in 2016 to those macro and regulatory headwinds and the outlook becomes slightly dubious for the
more - than - $ 200 billion in non-defeased, non-delinquent loans coming due
between now and the end of 2017.