This week is a blockbuster one for central banks, with the Federal Reserve (Fed), the Bank of England (BoE), and the Bank of Japan (BoJ) all set to announce interest rate decisions, one after another.
The Fed has kept borrowing costs at a two-decade high for eight meetings in a row, but it’s widely expected to deliver its first rate cut in over four years on Wednesday. That comes as inflation in the US edges closer to its 2% target and the country’s labour market starts to show signs of weakness. Case in point: recent data showed that the pace of hiring over the past three months slowed to its lowest level since the early days of the pandemic.