FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Singapore Maintains Steady Monetary Outlook as Positive Output Gap Persists into 2025 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
BOJ Governor Ueda and PM Takaichi Set for Key Meeting Amid Yen Slide and Rate-Hike Debate 
RBNZ Cuts Interest Rates Again as Inflation Cools and Recovery Remains Fragile 
FOMC followed through its promise and hiked rates four times in 2018 and forecasted two more rate hikes for 2019. Current Federal funds rate - 225-250 bps (Note, all calculations are based on data as of 4th February)
- March 2019 meeting: Market is attaching 98.7 percent probability that rates will be at 2.25-2.50 percent, and 1.3 percent probability that rates will be at 2.50-2.75 percent.
- May 2019 meeting: Market is attaching 98.7 percent probability that rates will be at 2.25-2.50 percent, and 1.3 percent probability that rates will be at 2.50-2.75 percent.
- June 2019 meeting: Market is attaching 95.4 percent probability that rates will be at 2.25-2.50 percent, and 4.6 percent probability that rates will be at 2.50-2.75 percent.
- July 2019 meeting: Market is 1.2 percent probability that rates will be at 2.00-2.25 percent, and 95.5 percent probability that rates will be at 2.25-2.50 percent, and 3.3 percent probability that rates will be at 2.50-2.75 percent.
- September 2019 meeting: Market is 1.2 percent probability that rates will be at 2.00-2.25 percent, and 95.5 percent probability that rates will be at 2.25-2.50 percent, and 3.3 percent probability that rates will be at 2.50-2.75 percent.
- October 2019 meeting: Market is 1.2 percent probability that rates will be at 2.00-2.25 percent, and 95.5 percent probability that rates will be at 2.25-2.50 percent, and 3.3 percent probability that rates will be at 2.50-2.75 percent.
- December 2019 meeting: Market is 8.5 percent probability that rates will be at 2.00-2.25 percent, and 87.4 percent probability that rates will be at 2.25-2.50 percent, and 4.1 percent probability that rates will be at 2.50-2.75 percent.
The probability is suggesting,
- Since our last review a week ago, the probabilities have loosened, especially after Federal Reserve announcement that the central bank would remain patient on future rate hikes.
- The market is pricing just one rate hike for 2019 and that with just 4.1 percent probability, compared to a 26.2 percent a week ago and 23.4 percent in the week before that, which means that the market far from pricing a rate hike in 2019, despite Fed’s forecast of two hikes.
- The market is now pricing a rate cut in 2019 with 8.5 percent probability, compared to 4.3 percent a week ago, and 4.4 percent probability, a week before that.
