US to keep rates on hold: AMP Capital

Killian Plastow
— 1 minute read

The US Federal Reserve is likely to keep interest rates on hold tomorrow, and is unlikely to raise them again until September, despite retail sales growth and increasing core inflation, says AMP Capital.

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.

Read more:

OneVue partners with Sentry on SMAs

Equity Trustees announces new senior manager

Mining 'cliff' at the halfway point: NAB

Investors upbeat about federal election

Energy Super restructures leadership


US to keep rates on hold: AMP Capital
investordaily image
ID logo

related articles

  • Bendigo Bank launches $300m raise as profit plunges

    Bendigo and Adelaide Bank has opened a $300 million capital raise as the company has recorded a 28.2 per cent drop in profit year-on-year fo...

  • APAC braces for virus hit

    As the coronavirus death toll climbs, economies throughout the Asia Pacific are preparing for an impact greater than that of SARS. ...

  • QBE takes climate hit

    QBE has recorded a surge in profits but drawn the ire of shareholders who believe it has failed to act on climate change risks as unusual we...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.