Welcome to Extreme Investor Network, your go-to source for the latest insights and analysis on the stock market, trading, and Wall Street. Today, we are diving into the upcoming central bank rate announcements and their potential impact on the currency markets.
First up, we have the Bank of England (BoE) Rate Announcement scheduled for Thursday at 11:00 am GMT. Following a 25 basis point rate cut in August, the BoE is expected to keep its Bank Rate on hold at 5.0%. Market participants are closely watching for any clues in the rate statement regarding future policy moves, especially given Governor Andrew Bailey’s recent comments on the need to maintain low inflation. With markets pricing in additional rate cuts this year, a focus will be on the potential for back-to-back cuts at the November and December meetings.
On the economic front, July CPI inflation data showed mixed results with headline inflation rising to +2.2% year-on-year and core inflation cooling to +3.3%. The upcoming August CPI report will be released before the rate announcement, with expectations for headline inflation to hold steady at +2.2%. Additionally, recent GDP and labor data suggest a mixed picture for the UK economy, with GDP growth softening in July and employment numbers showing improvements.
Next, we turn our attention to the Bank of Japan (BoJ) Rate Announcement on Friday at 4:00 am GMT. Following a 15 basis point rate hike in July, the BoJ is expected to keep its Policy Rate at 0.25%. The focus will be on the Monetary Policy Statement and Governor Kazuo Ueda’s press conference for any hints on future policy direction. Fitch Ratings recently noted the BoJ’s aggressive rate hikes, forecasting further increases to 0.5% by year-end and 1.0% by the end of 2026.
In the currency markets, any language supporting a rate hike by the BoJ could strengthen the Japanese yen further and impact the USD/JPY currency pair, which has been down -3.7% month-to-date. As always, stay tuned to Extreme Investor Network for real-time updates and expert analysis on these key events and their implications for traders and investors.
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