US Federal Reserve (Fed), and European Central Bank will announce their interest rates decisions tomorrow and today, respectively. The Fed’s governing board meeting is overshadowed by concerns over the regional banking sector that suffered one more blow over the weekend when JPMorgan stepped in to take over the troubled First Republic Bank.
The week that started with the Reserve Bank of Australia (RBA) delivering an unexpected rate hike will close with the US Nonfarm Payrolls report which will likely give a valuable insight into how the labour market reacts to the Fed’s monetary policy tightening strategy.
The International Monetary Fund’s (IMF) Regional Economic Outlook for Middle East, Central Asia and North Africa suggested that “economic growth in the Middle East, North Africa and Central Asia regions will slow in 2023, underlining the need to accelerate structural reforms.” The IMF report said that “Real GDP growth in the Middle East and Central Asia is forecast to fall to 2.9% in 2023, from 5.3% last year, before improving to 3.5% in 2024.”
Fed Interest Rates Decision
The Fed will announce their interest rate decision on Wednesday evening. The CME FedWatch tool gives a score of 86.1 %…