Factbox-Wall Street banks expect Fed to hike rates in July

(Reuters) – Most major U.S. banks expect the Federal Reserve to deliver another 25-basis-point rate hike in July after the central bank signaled that borrowing costs may need to rise by as much as half a percentage point by the end of the year.

The Fed’s main rate now stands at 5.00% – 5.25% range. Money markets are currently pricing in a nearly 77% chance of a 25 bps rate hike in July.

Following are forecasts from some big U.S. banks and their global counterparts:

Brokerage July September Comments Terminal

Rate

Expectati

on

BofA 25 bps 25 bps 5.5% –

hike hike 5.75%

Citigroup (NYSE:) 25 bps 25 bps Moved expectation 5.5% –

hike hike for June hike to 5.75%

September

JP Morgan 25 bps No hike 5.25%

hike 5.5%

Goldman 25 bps No hike Sees a possible 5.25% –

Sachs hike second hike as more 5.50%

likely in

November than

September

Morgan No hike 5.375%

Stanley 25 bps

hike

Deutsche 25 bps No hike 5.3%

Bank hike

UBS 25 bps

hike