New Delhi, Oct. 12 -- Bank of America (BofA) expects the US Federal Reserve to raise interest rates twice more this year, in October and December, as resilient economic growth and persistent inflation pressures could require further monetary tightening, even as policymakers consider slowing the pace of rate hikes.

In its US Economic Weekly report, BofA said the Fed could risk falling behind the curve if it pauses in October despite continued economic momentum. The report maintained its forecast of two additional rate hikes of 25 basis points each, although recent comments from policymakers suggest the central bank may prefer to move at a quarterly pace.

"The nominal economy is booming, and there is substantial risk that the energy shock...