Will the Eurozone and Japan’s central banks be in the tide of aggressive monetary tightening led by the Federal Reserve Board (FRB)? It will be revealed at the policy meeting of both central banks on the 21st.
Many economists say that the European Central Bank (ECB) will limit the rate hike to 0.25 points for the first time in more than 10 years at the policy committee on the 21st. Prior to that, the Bank of Japan is expected to maintain its monetary easing stance at the monetary policy meeting on the same day.
If things go as expected, it will become clear that he is hesitant to tighten monetary policy in the face of rising inflation.Central banks in South Korea and Canada have been in the past weekTighteningInvestors are arguing that the US financial authorities will move to a historic one-point rate hike.
Central Bank Rate Decisions This Week
Note: Mapped data show rate decision schedules for distinct central banks.
ECB is a gradual rate hikepolicyIt has been sticking to that line since early June, when it launched, and even though inflation is four times higher than the authorities’ target, it does not reflect the underlying pressures of the economy adjacent to the war zone. I haven’t broken my claim.
Japanese officials, whose consumer price index growth rate is much lower than in the euro area,Ultra low interest ratesWe are faced with the question of how long the policy can continue. The Liberal Democratic Party’s big win in the upper house election showed that the public’s inflation concerns have not yet reached a critical level, but as a result of the murder of former Prime Minister Shinzo Abe, he has strongly advocated monetary easing measures within the ruling party. Only one is gone.
The euro and the yen are being marketed for monetary policy as the global trend of monetary tightening intensifies, and the central bank’s mission is complicated by the sharp rise in import prices. “The Bank of Japan is in a difficult position. Ultra-low interest rates are needed to support SMEs and government debt management, but consumers are suffering,” the Bloomberg Economics (BE) report said.
Original title:
World’s Rate Laggards at ECB and BOJ Take Center Stage: Eco Week(excerpt)
