U.S. regulators said the failed Silicon Valley Bank’s customers will have access to all their deposits starting Monday and regulators set up a new facility to give banks access to emergency funds
Goldman Sachs’ analysts on Sunday said they no longer expect the U.S. Federal Reserve to deliver a rate hike at its March 22 meeting with considerable uncertainty about the path beyond March, in light of the recent stress in the banking sector.
Goldman previously expected a 25-basis-point hike in March.
U.S. regulators on Sunday said the failed Silicon Valley Bank’s customers will have access to all their deposits starting Monday and regulators set up a new facility to give banks access to emergency funds. The Federal Reserve also made it easier for banks to borrow from it in emergencies.
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Goldman analysts said they expected the measures taken by the regulators to provide substantial liquidity to banks facing deposit outflows and to improve confidence among depositors.
Goldman left unchanged its expectations for 25-basis-point hikes in May, June, and July, but said it saw considerable uncertainty about the rate hike path beyond March.
The bank said it now expected a terminal rate of 5.25-5.5 per cent.
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