The looming threat of a Brexit, following the June 23 vote in the UK, and its potential to disrupt the economy made a June rise all but impossible, but AMP Capital’s head of investment strategy and chief economist Shane Oliver says any movement before September is unlikely.
A “lack of urgency” in comments from US Federal Reserve chair Janet Yellen, coupled with “disappointingly weak” employment data suggest interest rates will stay put, Mr Oliver said.
In a note to investors, he said the Federal Reserve is expected to remain “cautious” about rate rises given low inflation and uncertain growth.
“Given a likely desire to see clear evidence that US activity indicators and jobs have picked up, the Federal Reserve is more likely to wait till September before moving again,” he said.
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