In the wake of Wednesday's Federal Open Market Committee (FOMC) +25bp rate hike and Powell's press conference.

BoA:

  • We take on board a greater tightening in lending standards, which could substitute for policy rate tightening
  • We now project one more 25bp rate hike for a terminal range of 5.0-5.25%, down 25bp from our prior target terminal range

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These guys musta been reading ForexLive, we've been conveying the tightening lending standards -> substitute for rate hikes meme for the past week:

If you need a catch-up on Wednesday's FOMC-bonanza:

Powell March 22 2023

Inflation fighter