<\/p>\n
The Bank of Japan, the first of five central banks to announce its monetary policy this week, will be the Bank of Japan on Tuesday morning. Expectations are that the bank will raise interest rates by 25 basis points to 1%, after holding them steady for the last three consecutive meetings. Governor Ueda is expected to be absent from the meeting after being hospitalized last week, and his deputy will speak at the press conference. Markets are awaiting clear or subtle signals regarding the pace of future rate hikes.<\/p>\n
Also on Tuesday, markets are watching the Reserve Bank of Australia’s meeting, where it is expected to keep interest rates unchanged at 4.35% after raising them by 75 basis points this year in the last three consecutive meetings. Markets have not priced in any further rate hikes in the near future, suggesting that the tightening cycle may have reached its end, at least temporarily.<\/p>\n
Meanwhile, the US Federal Reserve will begin its meeting tomorrow, Tuesday, under the chairmanship of Kevin Warsh, his first meeting in office. The results of the meeting will be announced Wednesday evening, with expectations that the bank will keep interest rates unchanged at 3.75% for the fourth consecutive meeting. This comes amidst pressure from Trump and the White House to lower interest rates, despite inflation reaching its highest level in three years.<\/p>\n
Markets and observers will be focused on the Fed’s quarterly interest rate and inflation projections, also known as the Dot Plot, which is released by the Fed every three months. Markets will be particularly interested in the expectations of the members and the new chairman regarding the future of US interest rates, or any indications of a tightening of monetary policy for the remainder of the year. This is especially relevant given that markets, according to the CME FedWatch tool, are currently pricing in a 55% probability of a single rate hike this year, in December.<\/p>\n
On Thursday, the Bank of England will announce its monetary policy and interest rates. It is expected to keep interest rates at 3.75% for the fourth consecutive meeting. Andrew Bailey believes the bank can wait to see the impact of high energy prices and the Iran war on inflation.<\/p>\n
The meeting is preceded by inflation figures, which are expected to rise to 3% from 2.8% in May. It is quite possible that if the figures exceed expectations, they will influence the bank’s decision at Thursday’s meeting, potentially leading to a vote to raise interest rates.<\/p>\n
Also on Thursday, the Swiss National Bank will announce its monetary policy and interest rates, with expectations that it will maintain the current zero interest rate.<\/p>\n
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The Bank of Japan, the first of five central banks to announce its monetary policy this week, will be the Bank of Japan on Tuesday morning. Expectations are that the bank will raise interest rates by 25 basis points to 1%, after holding them steady for the last three consecutive meetings. Governor Ueda is expected […]<\/p>\n","protected":false},"author":1,"featured_media":9315,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-9314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-currency-markets"],"acf":[],"yoast_head":"\n