MARKET DAILY

Market 03/18: Market bracing for FED and BOJ meetings

Traders become more hawkish than the Fed as US inflation remains anchored high. BOJ conducts repos to cushion the shock for the interbank market before pivoting.

Market becomes more hawkish than the Fed due to persistent inflation:

Futures market shows interest rate expectations at 4.7% by year-end - highest since Oct 2023

Meanwhile, the December FOMC dot-plot shows FOMC members expect rates at only 4.6% by year-end.

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