Markets price 125 bps of hikes over the next year, Nomura says
In short
Markets are betting on 125 basis points of rate hikes over the next year, Nomura said. It also expects the chance of more hikes to fall after February 2027 because spending may slow.
This matters for borrowers, investors and interest-rate markets because higher rates can affect loan costs and asset prices. The report does not say the current rate, the central bank’s next move, or how strong the slowdown may be.
What the reporting says
Markets are pricing an excessive 125 basis points of rate hikes over the next one year, according to Nomura in a publisher summary. The report says Nomura expects the probability of further rate increases to fade beyond February 2027, citing a possible slowdown in consumption. It does not state the current policy rate, the market used for pricing, or whether Nomura expects any near-term move.
Why it matters
Nomura says markets are pricing 125 basis points of rate hikes over the next year, and that the chance of more increases should fade beyond February 2027. The publisher summary links that view to a possible slowdown in consumption. The report does not identify the policy rate or the market instrument being priced, so the direct effect on borrowing costs is uncertain.