• +971(4) 430 6868

  • info@d1stp.com

  • 09:00 - 18:00

  • Sunday to Friday

13 December

By Ahmed Mamdouh

Category: FX Graph

 347       48       32             

Major central banks to start monetary tightening in 2018

A survey by Wall Street economists forecast that major central banks would follow the suit of the Federal Reserve in 2018 by shifting to monetary tightening.

As the Fed was the first to ease monetary policy and drag interest rates down to zero, other major central bank will start reversing the cycle next year.

There is more than 95 percent chance the Fed would hike interest rates on Wednesday by 25 basis points to a range between 1.25 percent and 1.50 percent.

Economists predict the rise in U.S. growth and inflation would provoke three rate hikes in 2018, while the ECB, BOE, SNB and Norges bank would prepare for the biggest monetary tightening in more than a decade.

Next year, the Fed is predicted to lift interest rates three times each by 25 basis points to 2.25 percent by December.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at D1stp.com, with 9 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.