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Friday, December 2, 2022

Markets eye upcoming central bank meetings

EconomyMarkets eye upcoming central bank meetings

World (Times Of Ocean)- The world’s markets await major central bank meetings this week, which might shift their monetary policy decisions amid the war in Ukraine and sanctions on Russia that impact their economies.

On Wednesday, the US Federal Reserve will conclude its two-day meeting. It is expected that the Fed will make a rate hike of 25 basis points to begin monetary tightening and could make at least three more interest rate increases before the end of the year.

Economic projections from the Fed, which include estimates of economic growth, unemployment, inflation, and interest rates, will be closely watched by investors. Fed officials may revise those if they believe that sanctions against Russia are adversely affecting the American economy, especially in the energy sector.

The Bank of England will meet on Thursday, and most analysts expect the central bank to make a third rate hike in an effort to tame rising inflation.

In the last three months, the BoE has raised interest rates twice, the latest being in February with a 25 basis point increase to 0.5%.

The Bank of Japan (BoJ), which is expected to leave its interest rate at negative 0.1%, will meet on Friday.

By holding interest rates steady, the BoJ diverges from other major central banks, even as consumers’ inflation expectations reach a record high.

The Turkish central bank will meet to announce its monetary policy decision on Thursday at 2 p.m. local time (1100GMT).

In addition to the potential shift in monetary policies of major central banks, Russia’s war on Ukraine continues to create fear and uncertainty for investors.

The price of Brent crude oil jumped to $139.13 per barrel last week, its highest price since 2008, amid the US and UK’s ban on Russian oil, natural gas, and coal imports.

As of 0710GMT on Monday, the international benchmark was trading at $109.43 per barrel for a 2.9% daily loss.

US benchmark West Texas Intermediate fell 3.2% to $105.83 a barrel.

Gold lost 0.6% to $1,976 per ounce and silver lost 0.7% to $25.68 per ounce as precious metals retreated.

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