In total, the Fed has raised its benchmark lending rate five times this year, with three of these being 75 bps hikes. Another rate hike is expected in November.
CGS-CIMB Research analysts Andrea Choong and Lim Siew Khee have kept an “overweight” rating on the banking sector, with DBS Group Holdings (DBS) as their most preferred pick, followed by United Overseas Bank (UOB) and Oversea-Chinese Banking Corporation (OCBC).
Earlier in September, the Fed raised interest rates by 75 basis points (bps) to 3.25% in a bid to reel in persistent levels of inflation. This comes after elevated core inflation readings, sparking global fears of stagflation setting in.
