This week, monetary policy meetings will be held by the Federal Reserve, the BoE, and the BoJ.
The Federal Reserve, the Bank of England (BoE), and the Bank of Japan (BoJ) are all expected to hold policy meetings and make interest rate decisions this week, putting monetary policy in the limelight. Sweden’s central bank may take the lead because a decision to raise interest rates by 75 basis points (bps) is anticipated tomorrow.
The Fed is also anticipated to increase interest rates by 75 basis points. Since March, the Federal Reserve has increased its benchmark federal funds rate a total of 225 basis points (bps) in a bid to battle increasing prices as the rate of inflation has skyrocketed to 40-year highs.
On Thursday, the Bank of England will make its interest rate decision public. With the UK’s inflation rate presently the highest among the G-7 nations and rising at the fastest rate in 40 years, rates are predicted to rise. The BoE earlier increased its benchmark interest rate by 50 basis points in August, bringing it to 1.75%.
In contrast to other developed nations, the Bank of Japan has kept interest rates at all-time low levels. Japan has one of the lowest rates of inflation among developed nations.
The central banks of Taiwan, Indonesia, and the Philippines are all anticipated to increase interest rates this week. The central banks of Switzerland and Norway are also forecasting increases.
