Fitch expects sharper increases in US interest rates in next several years

Dhwani Mehta FXStreet

The US-based rating agency, Fitch ratings, is out with its latest report titled ‘1Q17 edition of Risk Radar Asia-Pacific (APAC),’ highlighting the following:

On China:

A rise in regional geopolitical tensions and trade protectionism risks counteract the lower near-term risks of a hard landing for China's economy

Despite signs that there is greater awareness of rising financial risks, reliance on credit expansion by Chinese policymakers to support the economy continues

Medium-term macroeconomic imbalances are expected to build this year

On the US:

Fitch expects sharper increases in US interest rates in the next several years than markets currently factor in

More:

Together with a potential rise in trade protectionism, APAC economies may face key external risks

Tensions on the Korean peninsula, if allowed to escalate further, may bring additional disruptions to regional stability

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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