{"id":90682,"date":"2024-09-19T11:43:35","date_gmt":"2024-09-19T08:43:35","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=90682"},"modified":"2026-02-04T09:43:17","modified_gmt":"2026-02-04T07:43:17","slug":"boes-and-bojs-interest-rate-decisions-in-focus","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/ms\/boes-and-bojs-interest-rate-decisions-in-focus\/","title":{"rendered":"BoE\u2019s and BoJ\u2019s interest rate decisions in focus"},"content":{"rendered":"

The BoE\u2019s interest rate decision is set to occur during today\u2019s European session, with the majority of market participants currently expecting the bank to remain on hold. In particular, GBP OIS currently implies a 74.1% probability for such a scenario to materialize. As such attention now may turn to the bank\u2019s accompanying statement in which should policymakers imply that the bank may cut interest rates in their next meeting, it may weigh on the pound. On the flip side, should it imply that the bank may remain on hold it could provide support for the pound.The BoJ\u2019s interest rate decision is set to occur in tomorrow\u2019s Asian session, with the majority of market participants currently anticipating the bank to remain on hold, with JPY OIS currently implying a 98.5% probability for such a scenario to materialize. Thus, attention may turn to the bank\u2019s accompanying statement, in which should it be implied that the bank\u2019s 2% inflation target is being achieved in a sustainable manner, it may aid the JPY. On the flip side, should BOJ policymakers showcase hesitance to continue hiking interest rates, it may instead weigh on the JPY.Over in the US, the FED cut interest rates by 50bp for the first time since 2020 and thus effectively beginning the Fed\u2019s monetary easing cycle. Moreover, in the bank\u2019s accompanying statement<\/a> it appears that the 50bp cut was warranted by progress on inflation. However, in Fed Chair Powell\u2019s press conference, it appears that policymakers are concerned about the downside risks to employment which have increased according to Fed Chair Powell. Nonetheless, some concerns do appear to be lingering in regards to a potential recession in the US economy, as we remain cautious as to why the Fed would cut by 50bp, if \u201ceconomic activity has continued to expand at a solid pace\u201d.<\/p>\n\n\n\n

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