Analysis

Investing.com -- Citi strategists said they expect the Federal Reserve to cut rates by another 50 basis points in November, a decision that will largely depend on incoming data, especially the next monthly jobs report.

Atlanta Federal Reserve President Raphael Bostic is speaking about the economic outlook and monetary policy at the University of London.

TradingKey - This week, financial markets will be closely watching key data releases, with the U.S. August PCE Price Index—considered the Fed's preferred inflation indicator—taking center stage.

Investing.com -- Fed Governor Michelle Bowman said Friday that she voted against the central bank's decision to begin the rate-cutting cycle with jumbo cut to avoid stoking expectations that the Fed has won its battle against inflation.

Federal Reserve (Fed) Bank of Philadelphia Patrick Harker said on Friday that the US central bank has efficiently navigated a challenging economy over the past few years.  

Investing.com-- The People’s Bank of China kept its benchmark loan prime rate unchanged on Friday, but is expected to eventually trim the rate further amid steadily deteriorating economic conditions in the country.

The BoE left policy on hold, as expected at today’s policy decision. The Pound Sterling (GBP) is slightly firmer on the hold, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

The Pound Sterling (GBP) recovers intraday losses in the aftermath of the Federal Reserve’s (Fed) policy announcement, rising above 1.3200 against the US Dollar (USD) in Thursday’s London session.

TradingKey - The Federal Reserve has kicked off a new easing cycle with a 50 basis point rate cut, yet the market rally did not last long. Concerns loom over whether the Fed can replicate the economic soft landing achieved by Alan Greenspan in 1995.

Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 50 basis points to the range of 4.75%-5% after the September meeting and responds to questions in the post-meeting press conference.

Investing.com-- Citi analysts said they maintained their outlook for a 50 basis point cut by the Federal Reserve in November, after the central bank cut rates by a similar margin in its first cut since 2020. 

Investing.com-- The Bank of Japan is expected to keep interest rates unchanged at the conclusion of a two-day meeting on Friday, although policymakers could still present a hawkish outlook on expectations of higher inflation.

The Federal Reserve started the rate cutting cycle with a jumbo-sized rate cut on Wednesday, but economist believe a 50 basis point rate cut isn't the new 25bps, expecting a more measure pace of cuts ahead.

Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 50 basis points to the range of 4.75%-5% after the September meeting and responds to questions in the post-meeting press conference.

TradingKey - On September 18, the Federal Reserve will announce its rate decision.

TradingKey - Nick Timiraos, a spokesperson for the Federal Reserve, recently indicated a dovish outlook, leading the market to expect a 65% probability of a 50 basis point rate cut in September.

/PRNewswire/ -- Successful Asia Pacific and Japan (APJ) midmarket organisations are more likely to prioritise generative artificial intelligence (Gen AI) than those who are seeing lower revenue growth – and they are adopting new AI innovations in every corner of their business.

Israel said on Tuesday that halting Hezbollah’s attacks in the country’s north to allow thousands of residents to go back to their homes is now an official war goal, as it considers a wider military operation in Lebanon that could ignite an all-out conflict, according to the AP News. 

US markets are leaning firmly into bets of a 50 bps cut from the Fed.

Fitch Ratings said in its latest report on the Bank of Japan’s (BoJ) policy outlook that the “BoJ could hike rates to 0.5% by the end of 2024, 0.75% in 2025 and 1% by end-2026.”