Global Market- US Fed, BOE & ECB meeting & Bank of Japan
This week we will discuss this week as next week will be very busy for as US Fed meeting on 1-Feb-23, Bank of England & European Central Bank meeting on 2-Feb-23. We will also discuss how monitory policy by Bank of Japan is framing which is contradictory to its previous policy, inflation data and challenge for global economy.
US Fed meeting outcome on 1-Feb-23
• US Fed is expected to increase rate by 25-bps on 1-Feb-23 with over 99% probability as per Fed fund rate monitor tool.
• Next US Fed meeting on 22-Mar-23 is also factoring 25-bps rate hike, commentary by US Fed chair on 1-Feb-23 will be key to watch out for.
Bank of England outcome on 2-Feb-23
• Bank of England is expected to increase rate by 50-bps on 2-Feb-23.
• Latest inflation figures @ 9.2% for December 2022 released on 18-Jan-23.
European Central Bank on 2-Feb-23
• ECB is expected to increase rate by 50-bps on 2-Feb-23.
• Latest Euro zone inflation came at 9.2% for December, slowdown from 10.1% in November 2022.
Bank of Japan monitory policy at critical stage.
• Latest inflation from Japan as on 27-Jan-23 came at 4.3% Vs expectation of 4.2%.
• Bank of Japan continues to buy around 100% JGB securities which are illiquid and now BOJ is biggest holder of JGB securities.
Equichain Wealth Advisors: Market View & Opinion
In our earlier article we have mentioned global central banks obsession to bring inflation at 2% will come with some pain on economic. We don’t expect surprise on policy front but commentary will be key to watch out for, we expect comments by US Fed chair Jerome Powell and ECB president Christine Lagarde will be watched closely.