Will the Bank of Japan set off the bomb? What will the week bring?

Last week, investors focused on another batch of macroeconomic data from the US. Inflation in the United States is falling, but not as fast as expected by market participants. On the other hand, the readings of retail sales and data from the labor market were associated with a positive surprise. So it seems that despite the rise in interest rates, the US economy remains strong. This prompted some members Fed to suggestions on the continuation of the monetary policy tightening process, which had a negative impact on the valuation of American indices. Meanwhile, the situation on global markets remains moderately good. Disinflation and soft landing issues remain the main driver of prices so far, although some sentiment indicators are close to alarming levels. Fundamental ratios seem to be at attractive levels, but valuations are still below average, which is mainly due to the cosmic levels recorded from the last months of 2020 to the beginning of 2022.

Attention to the Bank of Japan

True g however, it may take place in April, when there will be a change in the chair of the president Bank of Japan. Abandonment of the yield curve control policy may lead to a significant decrease in liquidity in the markets, and as a result - the return of bearish sentiments.

We invite you to a meeting with the Chief Economist XTB Dr. Przemysław Kwiecień, in which he will focus on the key topic of this week - will the Bank of Japan set off the bomb?

In today's video:

• Should you be afraid of inflation?
• What is the current market sentiment?
• Will the Bank of Japan set off a bombshell in global monetary policy?

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In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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