The Week, Dominated by Central Banks’ Meetings
The global shares were mostly lower today. Still, stock markets have been gradually rising in recent weeks, making their way back to the record high levels they achieved earlier in the year before the numerous trade conflicts involving the US heated up.
Financial markets expect busy week, including meetings of the Bank of Japan, Fed and Bank of England. The Bank of Japan will wrap up a two-day policy meeting tomorrow that could include changes to its annual ¥800 trillion ($7.2 trillion) quantitative easing program. The Fed has its meeting on Wednesday. Economists do not expect any changes in the monetary policy.
The Bank of England is expected to raise interest rates at its meeting on Thursday. Most economists think the BoE will raise rates to a new post-financial crisis high of 0.75%. However, some economists are concerned that domestically generated inflation pressure, mostly from wage growth, is actually weakening, which would make a rate hike unnecessary and even damaging to households.