Speculation is growing on another round of rate cut by the US Federal Reserve, with market analysts and traders betting on a 25-basis point interest rate cut in November.
The increased speculation comes after a government report showed inflation last month was a bit firmer than expected.
The report showed the consumer price index rose 2.4 per cent in September from a year earlier, more than the 2.3 per cent economists had expected but down from the prior month reading of 2.5 per cent, Reuters reported.
After the report, traders moved to exit bets that the Fed could pause at next month’s meeting, and now see quarter-point rate cuts at each of the next several meetings.
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