Economists almost all agree that the U.S. Federal Reserve will raise interest rates this year. But while experts have a lot to say about higher rates’ effect on the United States, there’s been a lot less talk about what they will mean for the world’s No. 2 economy.
Many newly industrialized countries—such as Brazil and Mexico—will likely suffer from a Federal Reserve rate hike, but for a variety of reasons, China is suited to ride out a tightened dollar supply with relative ease, according to economists.
New York Fed President William Dudley said in a Monday address that the hike could have “disruptive” global implications, and investors are keenly watching China, which has been a key driver of international growth. But experts told CNBC that the country will not feel any significant negative impact from a U.S. rate hike.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.