Nomura sees bigger fed rate hikes in Sept, Nov

Nomura Holdings Inc. analysts boosted their forecasts for interest-rate hikes by the Federal Reserve through the year-end.

The Fed is seen to raise the benchmark rate by 75 basis points this month and a half-point at the November meeting, according to a report released Friday by economists led by Aichi Amemiya. That's an increase of 25 basis points for each of their previous forecasts for those decisions.

"Comments from FOMC participants over recent weeks suggest a greater urgency to raise rates somewhat more rapidly and to a higher overall level in order to more forcefully address persistently above-target inflation," according to the report.


Four factors have raised that urgency, the economists write:

The analysts maintained their projections of 25-basis-point increases each in December and February, which would bring their terminal interest rate forecast to 4%-4.25%.

The Nomura revision follows forecast revisions by Goldman Sachs Group Inc. earlier this week and matches both the size of those changes and the latest calls.