BOJ Governor Ueda and PM Takaichi Set for Key Meeting Amid Yen Slide and Rate-Hike Debate 
Singapore Maintains Steady Monetary Outlook as Positive Output Gap Persists into 2025 
BOJ Seen Moving Toward December Rate Hike as Yen Slides 
BOK Expected to Hold Rates at 2.50% as Housing and Currency Pressures Persist 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
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.
