The U.S. Federal Reserve is all set to hike rates, with 97.8 percent of the traders polled by Bloomberg expecting a 25 basis points hike.
Opinion is divided over subsequent rate hikes though, both among Federal Reserve board members and traders. Hao Zhou, director of emerging markets at Commerzbank AG falls in the category which expects only gradual rate hikes in the future. Mixed macro economic numbers coming out of the U.S. specially on inflation may restrict the number of rate hikes to just one more in this calendar year, Zhou said in an interview to BloombergQuint.
Globally we haven't clearly seen inflation pick up, so after the rate hike the spread between inflation and interest rate will be very narrow. It will be the narrowest since the global financial crisis.Hao Zhou, Director - Emerging Markets, Commerzbank AG
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