In addition to the Federal Reserve, several other global central banks are in the spotlight this week as they are expected to make policy decisions and address the economic fallout from the war in the Middle East.
“The supply shock is causing the market to lower growth expectations and raise inflation expectations,” equity analyst Kyle Rodda told my colleague Jake Conley. “That manifests itself in doubts about future profitability and the path forward for global interest rates.”
Here’s an overview of the major policy decisions that unfolded this week:
Reserve Bank of Australia: The RBA raised the interest rate by 25 basis points to 4.1% on Tuesday as authorities viewed the war in the Middle East as increasing inflation, which was already considered too high. For more details on the decision, read Yahoo Finance Australia’s coverage here.
Bank of Canada: Canada’s central bank is expected to continue holding borrowing costs at 2.25% on Wednesday as the country navigates moderating growth and the renegotiation of the U.S.-Mexico-Canada trade deal, as well as the global oil crisis.
European Central Bank: The ECB is expected to keep interest rates steady on Thursday, March 19, despite concerns about rising inflation in the eurozone. ECB officials are expected to offer assurances that the central bank will not allow another inflationary shock like the one experienced in 2022, when Russia invaded Ukraine.
The Bank of England: The BOE is also expected to keep interest rates unchanged at 3.75% on Thursday. Just two weeks ago, the U.K. central bank was expected to deliver the first of two interest rate cuts this year, but that estimate changed after data released Friday showed economic growth stalled in January.
Riksbank: Sweden’s central bank is expected to keep rates steady at 1.75% on Thursday.
Swiss National Bank: Swiss authorities are expected to keep rates unchanged at 0% on Thursday.
Read more here.