Fed: 44% probability on the possibility of March rate hike - Natixis

Research Team at Natixis notes that in the United States, J. Yellen’s comments and the upward surprise on core inflation pushed forward expectations for the next rate hike.

Key Quotes

“The market is now putting a 44% probability on the possibility of having a rate hike in March (versus 24% last week) and 62% for May (versus 39%). For the moment we stick to our view that the next hike will be in June but if we keep having positive surprises on inflation metrics, then a rate hike in May would become more likely.”