Central bank watch: FOMC, SNB, BoE and BoJ - UOB

Analysts at UOB Group noted that the Federal Reserve will announce its latest policy decision on Thursday at 2am SGT.

Key Quotes:

"The FOMC is highly likely to tighten by 25bps, an outcome that is very much expected. However, markets will be keeping a close watch on comments about recent soft inflation data, the new set of economic and policy estimates, as well as Fed Chair Janet Yellen’s press conference. Commentary on the plans to stop reinvestment of bonds and shrink the balance sheet will also be a key focus within the statement. 

The Swiss National Bank’s (SNB) policy decision is due on Thursday at 3.30pm SGT. The central bank will release its quarterly policy assessment along with growth and inflation forecasts. The central bank’s deposit rate is at a record low of minus 0.75%, where it is expected to stay. 

The Bank of England will announce its latest interest rate decision on Thursday 7pm SGT. The Monetary Policy Committee (MPC) will release its latest policy statement together with the minutes. There will be no updated inflation report and Governor Carney will not be holding a press conference. The vote split within the statement will be important and the commentary within the minutes will also be a key focus to assess whether other members are moving closer to voting for higher interest rates. 

The Bank of Japan (BoJ) concludes a two-day policy meeting on Friday. Whilst we do not expect any significant changes to monetary policy, there is speculation that the BoJ may communicate about an exit policy. The decision is announced around midday in Tokyo. BoJ Governor Haruhiko Kuroda will gives a press conference."