Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
RBNZ Raises Interest Rates to 2.50%, Signals More Tightening as Inflation Risks Persist 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
ECB Expected to Hold Rates as Middle East Tensions Keep September Hike in Focus 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Denmark Central Bank Intervenes to Support Krone Peg Against Euro 
A survey of fund managers by Bank of America Merrill Lynch showed that investors are quite positive on higher interest rate environment in the coming future.
- Investors are more optimistic about banks than they have been since 2003. It is expected a rate increase by central banks (FED, BOE) likely to benefit banks and banking stocks, who currently faces lower interest rate income due to lower rates.
- Fund managers are a net 30% overweight on banking stocks, which shows the extent of expectations of a rate hike from FED in 2015.
Bond yields move up, in a rate hike environment, which helps the bank to reap higher returns by investing the deposits.
Overweighting the banking stocks have risen by 11% as investors prepare for first rate hike from US FED in fourth quarter.
Banking stocks in UK are also expected to rise as focus will shift to BOE rate hike after FED's move.
