Morningstar Research (Thailand) projects US inflation to drop sharply in the first half of next year, saying the Federal Reserve is doing more than is required to bring inflation back to 2%.
The Thai unit of the Chicago-based financial services firm expects the Fed Funds rate to peak at 4.25-4.5% early next year, compared with the market estimate of 5%-5.25%.
The US central bank on Wednesday hiked the rate by another 0.75%, the fourth consecutive increase of this size, to a range of 3.75-4.00%. The rate has been increased six times this year to date from zero at the start of the year.
