China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
Market is now more hawkish than last time we checked after FED hike in December and speech from Janet Yellen. Market seems to be expecting FED to be more aggressive in 2016.
Let's look at the market pricing of hikes over next few meetings.
Current Federal funds target range is at 0.25 - 0.5%.
- January, 2016 meeting - Market is attaching 89% probability that rates will move to 0.25-0.5% and 11% probability that rates will be at 0.5-0.75%.
- March, 2016 meeting - Market is attaching 44% probability that rates will move to 0.25-0.5%, 50% probability that rates will be at 0.5-0.75% and 5% probability that rates will be at 0.75-1%
- April, 2016 meeting - Market is attaching 38% probability that rates will move to 0.25-0.5%, 49% probability that rates will be at 0.5-0.75%, 12% probability that rates will be at 0.75-1% and 1% probability that rates will be at 1-1.25%.
- June, 2016 meeting - Market is attaching 22% probability that rates will move to 0.25-0.5%, 45% probability that rates will be at 0.5-0.75%, 27% probability that rates will be at 0.75-1% and 5% probability that rates will be at 1-1.25%.
- July, 2016 meeting - Market is attaching 19% probability that rates will move to 0.25-0.5%, 41% probability that rates will be at 0.5-0.75%, 30% probability that rates will be at 0.75-1%, 9% probability that rates will be at 1-1.25% and 1% probability that rates will be at 1.25-1.5%.
As of now, Market is predicating with more than 50% probability of next hike to be in March, 2016. In December, post FOMC market expectation for a hike was in April.
