Fed may not pause rate hike cycle despite SVB crisis: Nomura

US inflation, Nomura said, is still elevated and the Fed will look to bring it down going ahead.

The US Federal Reserve (US Fed) may not pause its rate hike cycle despite the developments with US-based Silicon Valley Bank (SVB) and Signature Bank, said analysts at Nomura in a recent note, who believe the inflation in the US still remains above the comfort zone.

The immediate focus of the markets over the next few days, they said, will shift to the US Core CPI data due March 14 and then on the Federal Open Market Committee (FOMC) next week.

“It looks like we are back to where we were before SVB issues surfaced – but with a slightly