This week belongs to the central banks

The upcoming week on financial markets will definitely be focused on central banks. Last week, investors were closely waiting for the results of the meeting European Central Bank (ECB). This week, as many as 5 large (significant) central banks will decide on monetary policy, led by the American Fed.

China and the Fed on Tuesday

It all starts on Wednesday, September 20 at 03:15 Polish time. The People's Bank of China will then decide on the rates. However, this will only be a foretaste of the emotions that investors will experience several hours later. On the same day at 20 p.m. the American will announce its decision Federal Reserve (Fed) and will simultaneously publish the latest macroeconomic and interest rate projections.

The market does not expect any changes in the cost of money at the September meeting. This means that the Fed will maintain the fluctuation range for the federal funds rate at the current level of 5,25-5,50%. However, what will be crucial will be what comes next. Is this the end of rate increases in the US? Or maybe there will be more? Investors will look for answers to these questions in new projections and during Jerome Powell's press conference (Wednesday, 20:30 p.m.). What the latter says may actually determine what mood will dominate the markets in the second half of the week, and maybe even until the end of September.

Intense Thursday

On Thursday, he will decide on the level of interest rates Bank of England i Bank of Switzerland, but also central banks in Turkey, Norway and Sweden. Rates in the UK and Switzerland are expected to increase by 25 basis points each to 5,50%. and 2 percent This should also be included in the prices. Any other decision should trigger a strong reaction. But such a reaction (mainly in the currency market) should be triggered by signals from both central banks regarding what's next.

In the case of the remaining banks, the meeting promises to be the most interesting Bank of Turkey. According to forecasts, in order to tame inflation that has been out of control for many quarters, the bank will raise interest rates by as much as 500 basis points to 30%. from the current 25 percent

At the end of the BoJ week

The central bank week will end with the Bank of Japan meeting on Friday. There is no doubt that it will leave the main rate in Japan at -0,10%. However, as in the case of most of the banks described above, the key will be what new signals it sends to the markets.