Investors have long expected the U.S. Fed to raise rates by 0.25 percent on 15 March, following a hike of similar magnitude last December. U.S. President Trump’s intended stimulus will likely encourage the Fed to accelerate the pace of monetary policy normalisation, even though the fiscal stimulus will not be passed by Congress until the start of next year. Market consensus is for at least three rate hikes this year, taking the Fed funds rate to between 1.50 percent and 1.75 percent by end-2017.
What does this mean for Asia Pacific real estate investors? Find out with our Asia Pacific focused commentary piece.