The financial sector is getting ready for a busy week because significant central banks from across the world are set to publish their monetary decisions this week. All eyes are on the Federal Reserve’s most recent monetary decision in the US, however, as a result of recent volatility in the financial sector that has increased the level of uncertainty. Investors are eagerly awaiting updated economic forecasts and dot plot estimates for clues on the Fed’s perspective on the terminal level, inflation, economic growth, and unemployment outlooks. The Fed is expected to raise interest rates by 25 basis points to 5% in order to slow the economy and contain growing inflation, despite the current turbulence in the banking sector.
The Commerce Department will release data on February’s sales of new homes and durable goods, and S&P Global will release March purchasing manager surveys that gauge activity in the US manufacturing and services sectors. It will be a hectic week for US financial markets as the National Association of Realtors also releases sales of previously owned US houses in February.
Borrowing costs will reach a level not seen since November 2008 as a result of the Bank of England‘s anticipated 25 basis point increase in interest rates to 4.25%. Switzerland, Norway, and Turkey’s central banks will also be deciding on interest rates in Europe. Quick S&P According to global PMIs, private sector business activity increased for a third consecutive month in March, primarily as a result of a less severe decline in the manufacturing sector. While German investor morale is anticipated to be sliding down from a 1-year high, consumer confidence in the Euro Area has probably increased for a sixth month. Other significant economic data include the output and current account of the construction sector in the Eurozone, the producer prices in Germany, the foreign trade in Switzerland, and the final Q4 GDP estimates for Spain and the Netherlands.
The People’s Bank of China is anticipated to maintain its loan prime rates, and Japan will present February’s CPI data and March’s flash PMI readings. The Philippines’ central bank will decide on its interest rate, and Malaysia will announce its February CPI reading. In Australia, the latest RBA meeting minutes and PMI data for March will be closely watched. Investors are eagerly monitoring the announcements of this week’s monetary choices by central banks around the world in order to assess the state of the economy. As the week goes on, there will be a flurry of activity on the markets, with the addition of economic data releases from various locations. The fast-paced world of finance will require both traders and investors to remain vigilant in order to stay ahead of the curve.
