BNP Paribas: The Federal Reserve may resume rate hikes, potentially raising rates to 4.0% in December in one step

Glonghui, July 20｜BNP Paribas Wealth Management maintains a neutral view on global stock markets and suggests that investors should strengthen diversification in their portfolios. Facing persistent US inflation and slowing economic momentum, the institution has revised its previous forecast that the Federal Reserve would keep interest rates unchanged this year, now expecting a rate hike in December to 4.0%. At the same time, the bank has upgraded Japanese stocks to “overweight” and raised European, South Asian, and Southeast Asian stock markets to “neutral,” emphasizing the importance of a diversified allocation to deal with market volatility in the second half of the year.