Citi expects the US central bank Federal Reserve to raise its policy rate by 25 basis points in December after US inflation surprised to the upside in September.
Core inflation as measured by the CPI rose 0.335 percent month-on-month, with broad-based price increases across both goods and services. The bank estimates that the figure corresponds to a 0.30 percent month-on-month increase in core PCE and 3.07 percent year-over-year.
Citi expects the Fed to leave rates unchanged in October and then raise rates in December, before waiting until June 2027 to cut them.
