Upcoming Central Bank Meetings & Economic Data Releases
The upcoming week is packed with major events in the financial world, including meetings from the Federal Open Market Committee (FOMC), Bank of Japan (BoJ), and Bank of England (BoE), as well as key economic data releases from various countries. Let’s take a closer look at what to expect in the coming days.
China Activity Data (Saturday)
Kicking off the week, China will release its activity data for August. Retail sales, industrial output, and urban investments are all expected to be closely watched indicators of the health of the Chinese economy. With recent softer-than-expected CPI and import figures, market observers will be looking for signs of further stimulus needs in China’s economic data.
US Retail Sales (Tuesday)
On Tuesday, all eyes will be on the US retail sales data for August. Analysts are forecasting a modest increase in retail sales, with a particular focus on the ex-autos measure. Recent data from Bank of America’s consumer checkpoint report showed a slight improvement in household spending, signaling a normalization in consumer behavior. However, concerns remain about rising housing costs and potential risks to consumer spending.
Canadian CPI (Tuesday)
Also on Tuesday, Canada will release its Consumer Price Index (CPI) data for August. The Bank of Canada has been closely monitoring inflationary pressures as it weighs future rate decisions. Governor Macklem has highlighted the importance of balancing inflation concerns with potential downside risks to economic growth. The upcoming CPI release will provide further insights into Canada’s inflation outlook.
FOMC & BCB Policy Announcements (Wednesday)
Wednesday will see key policy announcements from the Federal Reserve (FOMC) and the Central Bank of Brazil (BCB). Market expectations are divided on the FOMC’s decision, with some anticipating a 25bps rate cut and others predicting a larger 50bps cut. Commentary from former Fed officials and market analysts suggests a close call on the rate decision. Meanwhile, expectations are building for the BCB to hike its Selic rate in the coming months, reflecting positive economic data trends.
BoE, Norges Bank, SARB & CBRT Policy Announcements (Thursday)
Thursday will be a busy day for central bank announcements, with the Bank of England, Norges Bank, South African Reserve Bank (SARB), and Central Bank of the Republic of Turkey (CBRT) all scheduled to release their policy decisions. Expectations are for the BoE to maintain its base rate, while the SARB is anticipated to cut rates amid slowing inflation. The CBRT is likely to keep rates unchanged, with a focus on inflation and economic stability.
PBoC LPR, BoJ Policy Announcement (Friday)
Wrapping up the week, the People’s Bank of China (PBoC) is expected to maintain its Loan Prime Rates at current levels. Meanwhile, the Bank of Japan (BoJ) is likely to keep its short-term interest rate steady, following a recent rate hike in July. Market analysts will be watching for any hints of future policy adjustments from both central banks.
In addition to the central bank meetings, economic data releases from various countries, including the UK, Japan, and Australia, will provide further insights into global economic trends. It will be a week filled with market-moving events and potential opportunities for investors to assess the current economic landscape.
