- We raised our 2025 earnings forecasts for DBS by 6% and OCBC by 5%. Domestic interest rates in Singapore are likely to remain elevated for slightly longer but will start receding in 4Q24, in tandem with rate cuts in the US. We anticipate two rate cuts in 2H24 as opposed to three stipulated by the Fed’s dot plot.
- - Read this at SGinvestors.io -
- Maintain OVERWEIGHT on Singapore banks.
The Fed adopting wait-and-see approach for rate cuts.
- The Fed paused rate hike for the fifth consecutive FOMC meeting on 20 Mar 24. The median projected path for the Fed Funds Rate is 4.6% by end-24 (unchanged) and 3.9% by end-25 (previous: 3.6%), indicating rate cuts of 75bp in 2024 (unchanged) and 75bp in 2025 (previous: 100bp).
- - Read this at SGinvestors.io -
The Fed to commence tapering pace of QT.
- 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/ 2024-04-09
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)
