THE forecasts that came out of the US Federal Reserve meeting overnight were relatively hawkish for interest rates outlook, but the language in the policy statement as well as comments from chair Janet Yellen remain dovish, the chief economist at Bank of Singapore said on Thursday. "On balance, it supports our view that interest rates will rise in Q2 2015, but there was nothing to shock the markets," Richard Jerram said. Mr Jerram said he was comfortable with the idea of raising interest rates now that the economy is returning to normal. "Conceptually this should cause no great problems to the economy or to financial markets. However, there is a lingering concern that after six years of zero interest rates some unpredictable vulnerabilities might have built up." ---
