Central Banks in Focus: Fed Meeting, Potential BOJ Rate Hike, and Global Monetary Policy Decisions Dominate Market Week

The upcoming week is dominated by central bank decisions, most notably the U.S. Federal Reserve meeting on Wednesday, where policymakers are expected to hold rates steady. Investors will closely scrutinize any guidance on future rate cuts, with market expectations leaning towards a potential move in June. Uncertainty stemming from trade policies and concerns about economic growth are influencing these expectations. Other key central bank events include meetings by the Bank of England, the Swiss National Bank (SNB), and Sweden's Riksbank. The Riksbank is expected to hold rates, potentially marking the end of its easing cycle. The SNB, already with the lowest rates in the G10, is anticipated to cut its benchmark rate further. In Japan, the Bank of Japan (BOJ) is considering raising interest rates, possibly as early as April or May. This follows hawkish comments from BOJ Governor Kazuo Ueda, who anticipates rising wages will boost consumer spending. Emerging market central banks are also actively addressing inflation. Brazil is expected to raise rates significantly, while South Africa's policy makers face challenges balancing U.S. tensions with domestic issues. Turkey's central bank is committed to maintaining a tight policy to meet its inflation target.