Wednesday’s Fed decision will be the highlight of the week, with forward guidance and a possible duration shift in focus. The BoE meets on Thursday and the BoJ on Friday.
In EM, Mexico and Russia are expected to leave rates on hold but there are calls for both to cut by 25bps. Central banks in Hungary, Czech Republic, Indonesia and the Philippines are also expected to leave rates unchanged. The minutes from the last policy meetings in India and Brazil will also be released.
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Monetary Policy
Wednesday’s Fed decision will be the highlight of the week, with forward guidance and a possible duration shift in focus. The BoE meets on Thursday and the BoJ on Friday.
In EM, Mexico and Russia are expected to leave rates on hold but there are calls for both to cut by 25bps. Central banks in Hungary, Czech Republic, Indonesia and the Philippines are also expected to leave rates unchanged. The minutes from the last policy meetings in India and Brazil will also be released.
Data
After last week’s data deluge the calendar is fairly light. Flash PMIs for December will be released in the US and Europe giving a first indication of year end performance. Germany’s IFO survey is also due, as is IP in retail sales in the US.
China’s November activity indicators are expected to show an increasingly broad based recovery. Inflation in India is expected to ease back after months of moving further from target.
Caroline Grady is Head of Emerging Markets Research at Macro Hive. Formerly, she was a Senior EM Economist at Deutsche Bank and a Leader Writer at the Financial Times.
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)