"Report": Fed may raise discount rate in May - ANALYTICS

"Report": Fed may raise discount rate in May - ANALYTICS
The rates will increase this year

Baku. 29 March. REPORT.AZ/ The US Federal Reserve System (Fed) will be able to increase its discount rate at its next meeting on May 1-2.

Analytical Group of Report News Agency  informs, this will depend on the inflation indicator for March, which will be announced on April 11.

Notably, in February, core inflation in the US was 0.2% with an annual increase of 1.8%. This indicator does not reflect food and energy prices and considered more objective. If the core inflation forecast for March would be more than 0.2% per month and 1.8% per year, then it is possible that Fed may raise discount rate in May.

Analytical Group believes that the annual inflation in the US will not exceed 2% and the rate will double, ie soar by 0.5%.

As a result, US-dollar rate can dramatically increase towards the end of the year. The USD / EUR ratio is expected to drop to 1.15 at the end of this year and below 1.15 in 2019. Next year, the Fed's rate is expected to increase by 0.75-1.25%.

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