Markets are trading quite ahead of the central bank meetings. The investors waiting for feedbacks from the worlds largest central banks Federal Reserve, Bank of Japan and Bank of England after the latest changes in the economic outlook.
Recently global stocks climbed to fresh heights. Most importantly all the US indices hit an all-time high this week as the investors believe the US economy is expected to post a faster rebound on the back of the Coronavirus vaccine distribution program and the rollout of the latest $1.9 trillion COVID-19 relief package.
U.S FOMC MEETING – MARCH 16-17, 2021
The US Federal Reserve meeting started on Tuesday, the two-day policy meeting that will conclude later today. The traders and investors patiently waiting for the Federal Reserve’s monetary policy statement for guidance on policy makers’ views on the economic outlook. While the investors also strongly waiting for the comments on inflation and interest rates from chairman Jerome Powell.
BANK OF ENGLAND MEETING – MARCH – 18, 2021
The BoE, which meets on Thursday, the central bank widely expected to keep interest rates steady and make no changes to their current pace of stimulus. While few market participants are expected to signal an increase to the central bank's bond-buying from May.
“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely,” Bank of England Chief Economist Andy Haldane said recently.
BANK OF JAPAN MEETING – MARCH – 19, 2021
The Bank of Japan (BoJ) will be holding its monetary policy meeting on Friday. The Bank of Japan will unveil a policy review, possibly tweaking stimulus programs and even maybe reiterating its capacity to cut rates further. The BOJ is also likely to clarify how much it will allow bond yields to deviate from their 0% target, and consider steps to address the side effects of negative interest rates.
“Excessive falls in super-long interest rates would affect returns for insurers and pension funds. On the other hand, it’s important to keep the entire yield curve stably low as the pandemic weighs on the economy,” BOJ, Governor, Haruhiko Kuroda said on Tuesday.
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