This week is expected to be a remarkably busy one, the main attractions going to the Federal Reserve, Bank of Japan and Bank of England will hold their policy meeting later this week.
U.S FOMC MEETING – SEPTEMBER 15-16, 2020
The Federal Reserve of the United States is the most important central bank in the world, as it governs the world’s reserve currency, the US Dollar. The Federal Reserve will start its two-day meeting on Tuesday. While once again all attention will be on Jerome Powell. He has recently said that rates will be accommodative for years to support the economy.
BANK OF JAPAN AND BANK OF ENGLAND MEETINGS – SEPTEMBER – 17, 2020
The Bank of Japan (BoJ) will be holding its monetary policy meeting on Thursday. The central bank is expected to maintain its benchmark interest rates at -0.10%. The Bank of Japan will not change policy at its meeting on Thursday with a new Prime Minister to replace Shinzo Abe, to be selected on Monday. As per the latest update, Japan’s governing party elected Chief Cabinet Secretary Yoshihide Suga as its new leader to succeed Shinzo Abe.
The BoE, which meets on Thursday, the economists expect the BoE to leave its interest rate unchanged on Thursday as the bank is in a ‘wait-and-see’ mode. It is also projected to maintain the bond-buying scheme at £745 billion. Meanwhile, Bank of England Governor Andrew Bailey said recently confirmed he expects the pandemic to permanently impact the economy by reducing GDP by 1.5 per cent, while deputy governor Sir David Ramsden warned it could be even worse.
Apart from this, we also have some key economic indicators due to be released on this week.
- Minutes from the Reserve Bank of Australia (RBA) – Tuesday
- The monthly labor market report from the UK – Tuesday
- Euro Area ZEW Economic Sentiment Index for September – Tuesday
- US retail sales - Wednesday
- New Zealand will be releasing its quarterly economic report – Thursday
- UK retail sales figures – Friday