Global markets waiting for Fed’s interest rate decision

The eyes of the global markets have been turned to the decisions that will come out of the US Central Bank’s (Fed) Open Market Committee (FOMC) meeting today.

While a positive trend was observed in global markets following the inflation data that came below expectations in the US yesterday, eyes were turned to the decisions that will come out of the US Central Bank’s (Fed) Open Market Committee (FOMC) meeting today.

According to the data released yesterday in the United States, annual increase in the Consumer Price Index (CPI), which was realized at the level of 7.7 percent in October, slowed down to 7.1 percent in November, recording a slowdown for the second month in a row. CPI monthly increase rate also decreased to 0.1 percent in November from the level of 0.4 percent in October.

The data, which were below expectations, raised hopes that the worst is behind in inflation, while decisions are expected to come out of the FOMC meeting to be announced at 22.00 this evening.

EXPECTATION OF A 50 BASIS POINT INCREASE

In the markets, the federal funds rate, which is currently in the 3.75-4 percent band, is given an 80 percent (and higher) probability to incur an increase of 50 basis points.