We have revised our Fed forecast and now no longer expect rate cuts in 2007. The target rate will remain unchanged at 5¼% for the entire year. The Fed is increasingly comfortable with the current key rate level. A less fragile growth profile has also made us rethink our forecasts – not least because of lower oil prices. The consequences of our new Fed and oil price forecasts on FX & FI developments are spelled out in this Friday Notes edition.
Further topics:
- Weekly Comment: Euros are forever.
- US: Lower oil prices will drive inflation lower.
- Bank of Japan: Unwilling to bite the bullet?







