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Markets prepare for interest rate decisions from the world’s main central banks

The week begins with markets eyeing the world’s major central bank decisions on interest rates.

Wednesday, dubbed “super-Wednesday”, reserves monetary policy meetings of the Federal Reserve System (Fed, the US central bank) and the Central Bank (BC) from here.

The expectation is that, in the United States, the Fed will raise the benchmark interest rate by 0.75 pp, although there are those who expect a more aggressive movement, of 1 pp, given the inflation data that came above expectations last week. .

In Brazil, the vast majority of analysts heard by the market bet on maintaining the Selic rate at 13.75%. There is a minority share that sees a slight upward movement, to 14%, an increase that is much more symbolic than monetary. This is the biggest cycle of interest rate hikes promoted by the BC since the adoption of the inflation targeting system in 1999 — in March 2021, the Selic was at 2%.

On Thursday, as the markets digest the previous day’s decisions, they also turn to Japan and the United Kingdom. While the Japanese central bank should keep interest rates at a negative level, the Bank of England (BoE) is already testing an increase by 0.50 pp, to 2.25%.

Going through its worst moment in four decades, the United Kingdom is experiencing a historic coincidence: while saying goodbye to Queen Elizabeth II and getting used to the new government, headed by Liz Truss, the British are also witnessing an inflationary escalation that can reach 14% at the end. of the year, according to forecasts by the BoE itself.

This Monday’s episode deals with expectations for Central Banks’ decisions and what the future holds for market dynamics. Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.

*Posted by Tamara Nassif

Source: CNN Brasil

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