After the recent report on inflation in the United States, Bank of America believes that the Fed will not continue to raise the key rate, investing.com reports with reference to Business Insider. The figures published on Tuesday were lower than expected - last month the consumer price index fell to 3.2%, 0.1 percentage points below forecast.
According to the bank, this result is already not much higher than the target level the regulator is aiming for (2%). In a note released on Tuesday, it argues that the Fed will not raise the rate in December, but central bank officials have decided to monitor economic data for now. According to BoA, in order for the Fed to proceed with an increase, consumer price growth would have to accelerate significantly, which is unlikely to happen. The bank notes that market participants also do not expect further tightening of the Fed's policy - such probability is estimated at 10%.