Investing.com – This week investors will have their attention firmly focused on monetary policy as the Federal Reserve, the Bank of England and the Bank of Japan issue updates at a time of increased market volatility.
The Fed is widely expected to deliver a quarter point interest rate hike at its meeting on Wednesday and will also update its economic projections and the dot plot of interest rate projections.
A post-policy meeting press conference by Fed Chair Jerome Powell will be closely watched. Concerns about the outlook for global growth along with trade tensions and market volatility have prompted traders to push back expectations on the expected pace of Fed rate hikes in 2019.
Investors will also get an update on the health of the U.S. housing market, with Tuesday’s data on building permits and housing starts and Wednesday’s report on existing home sales. Reports on durable goods orders and manufacturing activity will also be in focus.
The BoE is expected to leave monetary policy on hold at the conclusion of its meeting on Thursday, amid mounting uncertainty over Brexit.
British Prime Minister Theresa May’s failure to win key concessions from the European Union to salvage her Brexit deal have added to concerns over the prospect of a ‘no-deal’ exit from the EU.
The BoJ is also expected to keep monetary policy unchanged when its makes its policy announcement on Thursday as inflation remains nowhere near target and its economy shrank by the most in four years in the third quarter.
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