The probability of an interest rate cut in the US in June is decreasing. Inflation in the US rose to 3.5 per cent in March, according to recent figures from the US Department of Labor.
It was more than expected. Analysts had on average expected that prices during the month would increase by 3.4 per cent at an annual rate, according to a compilation of forecasts made by the Bloomberg news agency.
The so-called core inflation – where prices for energy and food are stripped out – remained at 3.8 per cent. There, analysts had expected a decline to 3.7 per cent.
The statistics produced a negative stock market reaction, with falling rates in futures trading on Wall Street. At the same time, the probability of a cut in the US key interest rate in June fell in pricing on the interest rate market.
Source: svt
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