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BofA adds Jan 2027 Fed rate hike to forecast
BofA Global Research has updated its forecasts regarding Federal Reserve interest rate hikes following a stronger-than-expected Consumer Price Index (CPI) report for October 2026. The bank now predicts an additional hike in January 2027.
What was reported
BofA maintains forecasts for Fed rate hikes in December and March as previously expected.
An additional 25 basis point (bp) hike is now forecasted for January 2027.
The October CPI data suggests the Fed has limited flexibility to raise rates quarterly due to inflation concerns.
Why it matters
Forecast changes by financial institutions, such as BofA, can influence market expectations for borrowing costs. These forecasts are based on economic indicators like the CPI, which measures inflation and purchasing power, affecting how central banks set monetary policy.
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Source & attribution
This article is presented by DailyMIQ. General educational context is DailyMIQ commentary.
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