Global financial markets are keeping an eye on the Federal Reserve’s (Fed) monetary policy meeting on July 26-27, while the CME Group’s FedWatch tool indicates investors are now weighing 77.5 percent on the Fed’s hike. The interest rate is 0.75% at this meeting. And given the weight of only 22.5% that the Fed will raise interest rates 1.00%.
Previously, investors weighed 80 percent that the Fed would raise interest rates 1.00% at its meeting on July 26-27 and weighted 20 percent that the Fed would raise interest rates by 0.75%.
top Fed officials including Fed Chairman Jerome Powell signaled that The Fed will continue to raise interest rates to curb inflation. Although global organizations, including the International Monetary Fund (IMF) and the Asian Development Bank (ADB), warned that The Fed’s accelerating rate hike might slow the economy.
The Asian Development Bank (ADB) lowered its forecast for Asia’s developing economies, including China and India, to 4.6 percent in 2022 from the previous forecast of 5.2 percent. The outlook for developing economies in Asia is still driven by external factors. These include the global economic slowdown, the Fed raising interest rates. and a sharp rise in commodity prices.”
Meanwhile, the IMF forecasts Asian economic growth in 2022 to slow to 5.9 percent from the previous forecast of 6.3 percent, saying the Fed’s interest rate hikes might boost Asian economies’ recovery. is delayed It continues to pressure Asian central banks to take measures to prevent the risk of capital outflows from the region.