Fed, ECB, Bank of Japan, Bank of Canada and RBNZ all announce rate decisions this week
Five central banks are scheduled to announce interest rate decisions between 28 and 30 October, starting with the US Federal Reserve on Wednesday. CME FedWatch data showed traders pricing a 92% chance that the Fed holds rates.
Five central banks are due to announce interest rate decisions this week, according to the Federal Reserve’s calendar and market research service Newsquawk.
US Federal Reserve (Wednesday 28 October). The Federal Open Market Committee meets on 27 and 28 October, with its decision due at 2pm New York time (6pm GMT) on Wednesday. The Fed’s target range is 3.75% to 4.00% after a 25-basis-point increase in September. Traders saw a 92% chance that rates stay unchanged and a 78% chance of a rise in December, according to CME’s FedWatch tool, CNBC reported on Friday. Newsquawk said 94 of 100 economists in a Reuters poll expected a hold.
Bank of Canada and Reserve Bank of New Zealand (Wednesday 28 October). Markets were pricing about an 80% chance of a 25-basis-point rise in Canada, where the policy rate is 2.25%, Newsquawk said. In New Zealand, where the official cash rate is 2.75%, markets priced a roughly 75% to 80% chance of a rise to 3.00%; ANZ, BNZ and ASB expect an increase, while Westpac expects a hold, according to Newsquawk.
European Central Bank (Thursday 29 October). Newsquawk said the ECB was not expected to raise rates, and that questions about the recent rise in French bond yields were likely to feature at the press conference.
Bank of Japan (Friday 30 October). The BoJ is expected to keep its policy rate at 1.25% after a rise in September and to publish an updated Outlook Report, Newsquawk said. Japan’s core consumer prices rose 2.1% in September from a year earlier.
Other scheduled releases include Australian consumer price figures on Wednesday and US third-quarter GDP and September PCE inflation data on Thursday. The UK government presents its Autumn Budget on Wednesday.
See also: Japan’s core inflation rises to 2.1%.
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