- We anticipate one rate cut in 4Q24 (previous: three rate cuts) and four rate cuts in 2025 (unchanged), bringing the Fed Funds Rate to 4.00% by end-25. Rate cuts are less pronounced due to sticky inflation. The last mile for the deceleration of inflation is drawn-out due to tight labour markets.
- - Read this at SGinvestors.io -
- DBS and OCBC provide 2025 dividend yields of 6.7% and 6.2% respectively. BUY OCBC, followed by DBS.
The front-runners in cutting rates.
- - Read this at SGinvestors.io -
- Bank of Canada lowered its overnight rate by 25bp to 4.75% in Jun 24, the first G-7 country to cut interest rates.
- European Central Bank cut the interest rate on its main refinancing operations by 25bp to 4.25% in Jun 24.
- Unfortunately, the Fed is not able to follow suit in the near term.
The Fed adopting wait-and-see approach for rate cuts.
- 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/ 2024-06-27
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
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Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
