Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
Indonesia Central Bank to Draft New Regulations After Expanded Economic Growth Mandate 
RBI Holds Interest Rates at 5.25%, Cuts India Growth Forecast Amid Rising Global Risks 
FOMC increased interest rates in March and June and increased its forecast from three rate hikes in 2018 to four rate hikes. June decision was unanimous. Current Federal funds rate - 175-200 bps (Note, all calculations are based on data as of 6th August)
- September 2018 meeting: Market is attaching 6.4 percent probability that rates will be at 1.75-2.00 percent, and 93.6 percent probability that rates will be at 2.00-2.25 percent.
- November 2018 meeting: Market is attaching 6.2 percent probability that rates will be at 1.75-2.00 percent, 91.3 percent probability that rates will be at 2.00-2.25 percent, and 2.4 percent probability that rates will be at 2.25-2.50 percent.
- December 2018 meeting: Market is attaching 1.7 percent probability that rates will be at 1.75-2.00 percent, 29.8 percent probability that rates will be at 2.00-2.25 percent, 66.7 percent probability that rates will be at 2.25-2.50 percent, and 1.8 percent probability that rates will be at 2.50-2.75 percent.
- January 2019 meeting: Market is attaching 1.6 percent probability that rates will be at 1.75-2.00 percent, 27.4 percent probability that rates will be at 2.00-2.25 percent, 63.6 percent probability that rates will be at 2.25-2.50 percent, and 7.3 percent probability that rates will be at 2.50-2.75 percent, and 0.2 percent probability that rates will be at 2.75-3.00 percent.
- March 2019 meeting: Market is attaching 0.8 percent probability that rates will be at 1.75-2.00 percent, 14.7 percent probability that rates will be at 2.00-2.25 percent, 45.8 percent probability that rates will be at 2.25-2.50 percent, and 34.9 percent probability that rates will be at 2.50-2.75 percent, and 3.8 percent probability that rates will be at 2.75-3.00 percent.
- April 2019 meeting: Market is attaching 0.7 percent probability that rates will be at 1.75-2.00 percent, 13.3 percent probability that rates will be at 2.00-2.25 percent, 42.6 percent probability that rates will be at 2.25-2.50 percent, and 36.1 percent probability that rates will be at 2.50-2.75 percent, and 7.3 percent probability that rates will be at 2.75-3.00 percent.
- June 2019 meeting: Market is attaching 0.4 percent probability that rates will be at 1.75-2.00 percent, 8.6 percent probability that rates will be at 2.00-2.25 percent, 31.6 percent probability that rates will be at 2.25-2.50 percent, and 38.5 percent probability that rates will be at 2.50-2.75 percent, 17.8 percent probability that rates will be at 2.75-3.00 percent, 2.9 percent probability that rates will be at 3.00-3.25 percent, and 0.2 percent probability that rates will be at 3.00-3.25 percent.
The probability is suggesting,
- Since our last review a week ago, the probabilities have eased marginally for near and far months.
- The market is pricing the third hike for 2018 in September and pricing it with 93.6 percent probability compared to 97.6 percent a week ago.
- The market is pricing the fourth hike in December with 68.5 percent probability instead of 68.6 percent probability just a week ago.
- The first rate hike of 2019 is priced in June with 59.4 percent probability.
