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VIEW: BNP Paribas: Death Knell For 75bp Hike Does Not Mean Dovish

FED

BNP Paribas note that they are changing their Fed call in response to “policymakers’ increasing resolve to frontload rate tightening in the face of ongoing inflation pressures. We now expect four consecutive 50bp hikes, with the Fed shifting back to a 25bp pace only after it hits the middle of its neutral range at the September meeting. We are not changing our estimate of the terminal fed funds rate (3.00-3.25%), as our overall view of the economy remains unchanged.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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