^{29 May 2023} The Week Ahead: Sticky price pressures raise interest rate hike probability

US: Market expectations of rate hikes rising. The unexpected acceleration in April Core PCE (see below) and wider resilient economic data raise risks to our expectation for a prolonged pause in the Fed’s interest rate cycle. We now see a strong possibility of a rate hike at the July meeting, though we cannot rule out a June increase.

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