S&P Global Ratings is looking at US interest rates holding at 3.25-3.50 percent in 2019.
“I am not surprised to see a pick-up in US’ interest rates,” said Beth Ann Bovino, US chief economist at S&P Global Ratings.
“The US economy is rather strong and that means the worry of course is that inflation is around the corner, so people are starting to price that into the 10-year. It also helps avoid the risk of an inverted curb, so in some sense, it’s probably a good thing for the US,” said Bovino.
On currency, she expects the US dollar to stabilise at higher levels.
We expect a big turnaround in the dollar in 2020, she further added.