A Hot Week for the Global Economy and Finance
Regardless of what is happening in the U.S. elections and separate from the new equations in the Ukrainian frontlines against Russian invaders, while the ominous shadow of a potential new war between Israel and Lebanon looms seriously over Middle Eastern equations, the world’s media will be dominated by the central banks of various countries. This week is the week of major policy meetings of the central banks of the world’s important economies.
The most significant event will be set by the U.S. Federal Reserve, which will start its two-day meeting to decide and announce its monetary policies from Tuesday. New forecasts suggest that it is not unlikely for Jerome Powell to implement a 0.5% interest rate cut, which would be a massive shift, although a 0.25% reduction is more probable.
The central banks of the United Kingdom, Norway, Brazil, and South Africa will also announce their monetary policies by Thursday, and this hot week of global finance and economy will be concluded by the Bank of Japan with its meeting ending on Friday. This meeting is particularly significant given the fluctuations in Japan’s monetary equations.
Experts believe that the trend of interest rate reduction in various countries has started and will continue in each country’s specific conditions. The European Central Bank announced this trend with a new interest rate cut last week, and the state of stock markets and banking financial flows in countries will be noteworthy not only throughout this week but also after all central banks announce their new policies.