UBS Adjusts Interest Rate Forecast Amid Inflation Concerns
UBS Global Wealth Management revises its forecast on U.S. interest rate cuts, citing rising inflation and economic resilience. Brokerages see no policy easing this year due to elevated oil prices and strong labor markets, predicting rate cuts in December 2026 and March 2027 instead.
UBS Global Wealth Management has revised its U.S. interest rate cut predictions, aligning with other brokerages due to persistent inflation and a robust labor market.
The change comes as inflation hits a three-year high, driven by energy prices and a protracted war in Iran, diminishing hopes for near-term rate cuts.
Despite continued job growth and stable unemployment rates, UBS foresees rate cuts in late 2026 and early 2027, diverging from earlier expectations for this year.
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