The Fed will still hike its policy rate by 50bp tomorrow and the new projections could show the peak in rates above 5%, but the 0.2% m/m increase in core consumer prices in November provides strong support to our long-held view that mounting disinflation will soon persuade the Fed to move to the side line after one additional 25bp hike in early February.
We will be discussing the decisions of the Fed, BoE and the ECB in a Drop In on Thursday 15th December at 3pm GMT. (Register here.)
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