Lates News

An article in the Financial Times pointed out that this week will see a "super central bank week." Although it is expected that the interest rate decisions of these central banks will not bring any surprises, given that the Middle East conflict is unfolding, the policy guidance accompanying the decisions will be closely watched. The four major central banks - the Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan - will announce their decisions on Thursday Beijing time. In addition, rate setters in Australia, Brazil, China, Canada, Indonesia, Sweden, and Switzerland will also meet this week. Except for the possibility of an exception with the Reserve Bank of Australia, other central banks are likely to maintain interest rates unchanged. However, the possibility of a rate hike later this year has increased due to the conflict in Iran. The interest rate market has responded hawkishly to the upcoming energy price shock; the expectation of a rate cut by the Federal Reserve and the Bank of England has been erased, with the latter potentially raising rates. Expectations for a rate hike by the European Central Bank have also increased further this year. The rate path of the Bank of Japan has remained relatively unchanged since the war began.