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UBS Bank expects the U.S. Federal Reserve to raise interest rates for the third time in March 2027, following September's inflation data that exceeded expectations. Consumer prices increased by 0.65% month-on-month and 3.7% year-on-year. The energy sector primarily drove the inflation increase, especially with rising gasoline prices and airline costs due to fuel supply issues. The bank forecasts a total of three interest rate hikes over 2026 and 2027, after which rates are expected to stabilize, amid ongoing inflation pressures and geopolitical events impacting energy markets.
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