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3 Important Economic Events of the week
Know which event will have significant impact on financial markets this week.
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Bank of England Monetary Policy Meeting
The Bank of England will be holding its monetary policy meeting on Thursday this week.
No changes are expected from the central bank amid the recent economic developments.
The ease in inflation and a pickup in wages will most certainly be welcome by the central bank officials.
However, the BoE’s monetary policy committee is unlikely to make any major changes.
This comes amid Brexit being the major focus for policy makers.
With no trade terms still in sight, the central bank officials are likely to brush aside the economic data for the moment.
There are still inherent weaknesses in the UK’s economy and as a result, BoE officials are expected to maintain a neutral tone.
The markets do not expect to see any rate hike from the BoE at this week’s event.
Bank of Japan Monetary Policy Meeting
The Bank of Japan will be the next central bank meeting that is due this week.
The BoJ is widely expected to maintain the status quo which includes keeping the central bank’s key interest rates unchanged at -0.10% and also maintaining its massive QQE program.
With the consumption tax due to come into effect from October 2019, the BoJ is likely to buy more time until this comes into effect.
However, investors who are already speculating that the next policy move from the BoJ will be a tightening of policy, will be closely looking for any clues from the BoJ’s statement.
US core PCE price index
A busy week is in store for the U.S. dollar. The week ahead will see the release of the core PCE price index.
Given that this is the Fed’s preferred gauge of inflation, investors will be closely watching the report.
The core PCE price index is expected to rise 0.1% on the month.
Later in the week, the ADP’s private payrolls data is due which is later followed by Friday’s official payrolls report.
The U.S. economy is expected to add 190k jobs for September while the unemployment rate is forecast to remain steady at 3.7%.
Meanwhile, wage growth is expected to be muted with forecasts pointing to a 0.2% increase on the month.
