![]() ![]() ![]() In an interview released over the weekend, European Central Bank President Christine Lagarde said it was “very likely” they would raise interest rates by 50 basis points this month and the bank had more work to do on inflation.Īustralia’s central bank is expected to lift its rates by 25 basis points on Tuesday, while the Bank of Canada is seen pausing having raised rates at a record pace of 425 basis points in 10 months.įriday marks the final policy meeting for Bank of Japan Governor Haruhiko Kuroda before Kazuo Ueda takes the reins in April, and all eyes are on the fate of its yield curve control (YCC) stance. The Fed is hardly alone in warning of further tightening. “If we end up in a situation where the jobs and inflation numbers present a conflicting view, the outcome of the Fed meeting could become even harder to predict.” “Payrolls are due on the final day when Fed officials can publicly discuss monetary policy, but CPI will be released during the blackout period,” he added. “Powell’s testimony comes before the payrolls and inflation numbers, therefore, he is likely to avoid committing to a policy path,” said Jan Nevruzi, an analyst at NatWest Markets. Forecasts are centered on a more modest increase of 200,000 following January’s barnstorming 517,000 jump, but risks are on the upside.Īnd that will be followed by the February CPI report on March 14. ![]() Much, however, might depend on what the February payrolls report reveals on Friday. San Francisco Fed President Mary Daly on Saturday reiterated rates would have to go up but set a high bar for moving to half-point increases.įutures imply a 72% chance the Fed will go by 25 basis points at its meeting on March 22.Īll of which sets the scene for Fed Chair Jerome Powell’s testimony to congress on Tuesday and Wednesday, where he will no doubt be quizzed on whether larger hikes are needed. Markets have become resigned to more rate rises from the Federal Reserve but are hoping it will stick with quarter-point moves rather than switch back to half-point hikes. Yields on 10-year Treasuries stood at 3.970%, after last week’s spike to 4.09% proved tempting enough to attract buyers. S&P 500 futures dipped 0.1% and Nasdaq futures 0.2%, after rallying on Friday as bond yields eased back a little. Japan’s Nikkei (.N225) climbed 1.0% to a three-month top, while South Korean stocks (.KS11) added 0.6% helped by a softer reading on inflation. ![]()
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