Barclays now expects the US central bank Federal Reserve to raise its policy rate by 25 basis points in both December and January, followed by a longer pause at 4.25–4.50 percent.
Previously, the bank expected only a hike in December.
The forecast change follows higher-than-expected inflation in September. Barclays has raised its forecast for core PCE inflation to 2.6 percent at the end of 2027, from 2.3 percent previously.
The bank believes that inflationary pressure is too high to reach the Fed’s 2 percent target within a reasonable timeframe.
