Cen­tral banker: rate hike ‘plau­si­ble’

The Myanmar Times - - International Business -

THE pre­vail­ing view that the US Fed­eral Re­serve will raise the key in­ter­est rate next month is “plau­si­ble”, a vot­ing mem­ber of the mon­e­tary pol­icy com­mit­tee said.

“Ab­sent sig­nif­i­cant neg­a­tive eco­nomic news over the next month, the mar­ket’s as­sess­ment of the like­li­hood of tight­en­ing in De­cem­ber seems plau­si­ble,” Bos­ton Fed­eral Re­serve Bank Pres­i­dent Eric Rosen­gren said.

The pol­icy-set­ting Fed­eral Open Mar­ket Com­mit­tee (FOMC) will next meet on De­cem­ber 13-14 and is widely ex­pected to in­crease rates for the first time since De­cem­ber 2015.

With un­em­ploy­ment at 4.9 per­cent the labour mar­ket is close to full em­ploy­ment. In­fla­tion is also ap­proach­ing the Fed target and is ex­pected to reach 2pc next year. –

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