The US Federal Reserve, which sharply increased its inflation forecasts for 2021 on June 16, appears to be more hawkish than initially expected by economists.

The majority of the 13 members of the Federal Open Market Committee believe that the central bank will increase rates in 2023 and at least twice that year.

To the team of analysts at DBS Group Research, Derek Tan, Rachel Tan, Dale Lai and Geraldine Wong, the revised expectations of two hikes by end-2023, compared to the previous expectation of one hike by 2024, is likely to drive rates higher.

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