New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
RBA Reassesses Pricing Behaviors and Policy Impact Amid Inflation Pressures 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
BOJ Governor Ueda and PM Takaichi Set for Key Meeting Amid Yen Slide and Rate-Hike Debate 
BOK Expected to Hold Rates at 2.50% as Housing and Currency Pressures Persist 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
FOMC increased interest rates in March and June and increased its forecast from three rate hikes in 2018 to four rate hikes. June decision was unanimous. Current Federal funds rate - 175-200 bps (Note, all calculations are based on data as of 17th September)
- September 2018 meeting: Market is attaching 94.4 percent probability that rates will be at 2.00-2.25 percent, and 5.6 percent probability that rates will be at 2.25-2.50 percent.
- November 2018 meeting: Market is attaching 94.4 percent probability that rates will be at 2.00-2.25 percent, and 5.6 percent probability that rates will be at 2.25-2.50 percent.
- December 2018 meeting: Market is attaching 19.6 percent probability that rates will be at 2.00-2.25 percent, 75.9 percent probability that rates will be at 2.25-2.50 percent, and 4.4 percent probability that rates will be at 2.50-2.75 percent.
- January 2019 meeting: Market is attaching 17.9 percent probability that rates will be at 2.00-2.25 percent, 71.1 percent probability that rates will be at 2.25-2.50 percent, and 11 percent probability that rates will be at 2.50-2.75 percent.
- March 2019 meeting: Market is attaching 8.7 percent probability that rates will be at 2.00-2.25 percent, 43.6 percent probability that rates will be at 2.25-2.50 percent, and 41.9 percent probability that rates will be at 2.50-2.75 percent, and 5.8 percent probability that rates will be at 2.75-3.00 percent.
- May 2019 meeting: Market is attaching 7.6 percent probability that rates will be at 2.00-2.25 percent, 39.5 percent probability that rates will be at 2.25-2.50 percent, and 42.1 percent probability that rates will be at 2.50-2.75 percent, and 10.8 percent probability that rates will be at 2.75-3.00 percent.
- June 2019 meeting: Market is attaching 4.1 percent probability that rates will be at 2.00-2.25 percent, 24.6 percent probability that rates will be at 2.25-2.50 percent, and 40.8 percent probability that rates will be at 2.50-2.75 percent, 25 percent probability that rates will be at 2.75-3.00 percent, 5.5 percent probability that rates will be at 3.00-3.25 percent.
The probability is suggesting,
- Since our last review a week ago, the probabilities have tightened.
- The market is pricing the third hike for 2018 in September and pricing it with 100 percent probability, higher than 98.4 percent last week ago.
- The market is pricing the fourth hike in December with 80.3 percent probability compared to 79.1 percent a week ago.
- The first rate hike of 2019 is priced in June with 71.3 percent probability, instead of 67.8 percent probability just a week ago.
