As the end of this year approaches, recent central bank meetings have become the focus of markets to determine where the Bank's direction will be next year. Most likely, the FED meeting will be held on December 18 and 19, with the possibility of raising the interest rate for the fourth time this year to 2.50%. The decision will be accompanied by the Bank's latest economic growth forecast, inflation and interest rate hike in the coming period with a press conference by Bank Governor Powell commenting on economic developments.
On the other hand, the Bank of Japan is expected to keep its monetary policy unchanged on Thursday morning as inflation continues to keep pace at 2%, as the bank will prefer to keep the interest rate at a negative range of -0.10% in an attempt to boost economic growth.
Later in the day, markets were eyeing the Bank of England meeting as British domestic developments and the Brexit became the driving force behind sterling moves. The interest rate may be kept unchanged at 0.75% and the volume of asset purchases will remain at 435bn until the EU is officially exited and the implications for the country's economic situation are seen.
Also, a number of important economic data are expected to affect central banks' global outlook for the coming period as markets await UK inflation data on Wednesday, which may see some slowdown as a weaker consumer spending is dominated by uncertainty. On Thursday, retail sales are expected to rebound 0.3%.
Inflation data in Canada will be released later on Wednesday, with New Zealand's GDP data due in the evening. On Thursday morning, Australian employment change is expected to rise by 20,000 versus an earlier rise of 32.8K. The end of US GDP readings will be announced during the third quarter of the year at the end of the week, which may grow on a quarterly basis.
