Traders and investors will pay close attention to the monetary policy meetings of the US Federal Reserve, European Central Bank (ECB), and Bank of England. These meetings are scheduled for today (and tomorrow). According to market analysts, the three central banks will likely raise their benchmark interest rates to lower inflationary pressures. Market participants will be able to examine the US Nonfarm payrolls report on Friday.
In other news, Statistics New Zealand announced that the country’s unemployment rate rose to 3.4% in the fourth quarter of 2022, slightly higher than forecast. Commenting on the unemployment rate data, a Westpac report noted that “while the jobs market is coming from a very strong starting point, there is good reason to expect a deterioration in the years ahead. Wage inflation, however, is still on the rise. The turning point is expected to be later. We expect an additional 0.5% in Official Cash Rate this month.
Interest rates likely to rise at the US Federal Reserve
The Fed will announce its interest rate decision later today. Market analysts predict that the Fed will increase borrowing costs by 25bps to 4.5% to 4.7%. This would…