Deutsche Bank expects Fed rate hike in January 2027 after hot inflation data

By Reuters News

- Deutsche Bank on Tuesday said it expects an additional 25-basis-point interest rate hike from the US Federal Reserve in January 2027, after a hotter-than-expected October inflation reading reinforced fears that the Fed could keep interest rates higher for longer.

"This morning's CPI data continued to show broad-based gains, reinforcing our concerns from earlier this year about the persistence of price pressures," Deutsche Bank said in a note.

The brokerage previously expected the central bank to raise rates in December and March.

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