...Goes back in shell in 2017

BNP is out with a report that says they expect a single rate hike by the Fed in 2016 - probably in September - but expects the Fed to then go into a shell in 2017.

Paul Mortimer-Lee adds:

  • They do not see a rise in core inflation. They look for core PCE to stay flat around 2% and core CPI a bit higher
  • They expect that GDP in 2017 will come in at 1.6%
  • They expect global growth forecasts to remain near 3%
  • They see risks skewed to the downside. Brexit going bad remains a risk as does the US election in that it could damage confidence/investment