Expect higher rates by June: economist

Singapore

THE market has underestimated the pace of higher interest rates in the US, with the first hit expected around June rather than in the second half of the year, as some expect, says Bank of Singapore chief economist Richard Jerram.

This sets the stage for some volatile swings in the equity markets, noted panellists from OCBC at a seminar for its premier banking clients, though markets may turn calm within 6-9 months from the point of the rate hike, with investors adjusting as they did after previous rate boosts.