Inflation surged 8.3% year-over-year in August, and another significant rate hike seems inevitable. Analysts at Goldman Sachs now expect a 75-bps hike this week, followed by a 50-bps hike in November.
“How the drag from tighter financial conditions will net out with other key growth impulses in 2023 is more uncertain, and we could imagine the hiking cycle extending beyond this year,” said the analysts, led by economist Jan Hatzius.
