- We expect the Fed Funds Rate to reach a peak of 5.0% by mid-23 and remain at elevated levels in 2H23. We expect DBS and OCBC to increase dividend by 17% and 7% respectively to S$1.68 and S$0.60 in 2023.
- - Read this at SGinvestors.io -
Moderation in pace of rate hike.
- The Federal Open Market Committee (FOMC) has raised the target for Fed Funds Rate by 50bp to 4.25% on 14 Dec 22. This is a step down from a series of four consecutive 75bp hikes.
Too early to talk about rate cuts.
- - Read this at SGinvestors.io -
- inflation for housing services is expected to ease in 2023 as rents for new leases have declined, and
- inflation for core services (non-housing) is expected to take a longer time to moderate due to high labour-content of 55%, elevated job vacancies and growth in wages.
- The committee expects core PCE inflation to recede gradually to 3.5% in 2023 and 2.5% in 2024.
Labour market is too tight.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-01-06
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
