The OECD stated in its latest outlook, released on Wednesday. That it expects the US Fed funds rate to peak at 5.25%-5.5% in Q2 2023. Followed by two “modest” drops in H2 2024.
OECD Additional Remarks
The OECD forecasts 1.6% growth in the United States in 2023 and 1.0% growth in 2024 (earlier 1.5% in 2023 and 0.9% in 2024).
Global GDP growth is expected to be 2.7% in 2023 and 2.9% in 2024. (up from 2.6% in 2023 and 2.9% in 2024 earlier).
Chinese growth is expected to be 5.4% in 2023 and 5.1% in 2024. (up from 5.3% in 2023 and 4.9% in 2024).
Japanese growth is expected to be 1.3% in 2023 and 1.1% in 2024. (up from 1.8% in 2023 and 0.9% in 2024).
1.4% in 2024 and 1.4% in 2023).
Rates at the ECB are expected to peak in the third quarter of 2023 and then remain steady until the end of 2024 at 4.25%.
Growth in the United Kingdom of 0.3% in 2023 and 1.0% in 2024 (formerly -0.2% in 2023 and 0.9% in 2024).
Japan will not raise interest rates until the end of 2024.
Rate rises are not predicted in Canada or South Korea, but rates are likely to peak. In Australia and the United Kingdom in the second quarter of 2023.
Eurozone growth is expected to be 0.9% in 2023 and 1.5% in 2024. (up from 0.8% earlier).
