The US Federal Reserve will make a decision about interest rates today. The CME’s FedWatch Tool indicates an 88% probability of a 25 basis points rate hike, despite the turmoil in the banking sector. Jerome Powell is expected to deliver his remarks right after the Fed’s governing board meeting. Investors and traders will carefully review his remarks to determine if the central banks will be focusing their attention on financial stability or price.
On Thursday, it will be the Bank of England’s (BoE) turn to decide on interest rates. Earlier today, the Office for National Statistics (ONS) announced that the UK’s CPI inflation came in at 10.4%, on a year-to-year basis, in February. The figure surpassed economists’ expectations and marked the first inflation rise in the last four months. The British Pound gained strength from the higher inflation reading, which puts pressure on the BoE for tighter monetary policy.
Fed interest rate decision
UOB economists suggest that the Federal Open Market Committee will likely increase its Funds Target Range by 25 base points at each of its March and May meetings. The UOB report stated that the FOMC’s latest minutes…