Fed’s Monetary Policy Statement
On Wednesday, the FOMC will make its monetary policy statement. Taking the late inflation rate of 1.3 % into account, which is still far from the 2% objective, the Fed will maintain its interest rate at 2.5%. In March, the data-dependent Fed signaled no more rate hikes for the year amid tightening financial conditions and geopolitical concerns abroad. However, some concerns have arisen from potential inflationary pressure and despite current below-target figures, low rates could increase these risks.
Bank of England interest rate decision
This Thursday, the Bank of England will announce its decision regarding interest rates.
Bank of England policymakers are set to hold rates firmly at 0.75% next week as the “fog” from the Brexit process continues after the six-month EU departure delay.
The Bank’s latest rates decision – which will be accompanied by its quarterly Inflation Report forecasts – comes amid signs that Brexit stockpiling has boosted recent economic growth figures.
Data suggests the economy may have expanded by 0.4% in the first quarter, up from 0.2% in the final three months of 2018.
Next Wednesday, the Eurostat will release the year-on-year and quarter-on-quarter figures for GDP growth. The rates of growth are expected to be 1.1% and 0.2%, respectively