RBA, ECB and BOC Likely to Hold Rates

  • Monday, March 4, 2019

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The Most Important Central Bank Releases This Week
central bank communications analytics research

Three of the G10 currency central banks have policy meetings scheduled this week, and all three are likely to hold rates. The Bank of Canada is likely to sound neutral in doing so, while the ECB is likely to err slightly dovish. The Reserve Bank of Australia promises to be the biggest market mover of the week due to the remaining possibility of a rate cut, though it appears more likely that policymakers will hold rates this week and signal that a cut is imminent. In the UK, Brexit is dominating policymaker concerns, and this week’s speeches by BOE policymakers are likely to echo Governor Carney’s signal that the BOE will support the UK economy in the event of a no-deal Brexit. At the Bank of Japan, the only voice this week is dovish dissenter Harada, who will likely make his case that further stimulus is required for the BOJ to achieve its inflation target. Finally, several Fed policymakers are slated to speak. Although the U.S. economy remains on firm footing, financial market fears and international economic headwinds have put rate hikes on hold, so policymakers are likely to sound neutral or slightly hawkish.

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