Central Banks’ Rate Decision: The Week to Watch.

Tuesday, 19 March 2024, 05:30 – RBA Interest Rate Decision (Mar)

The RBA maintained the cash rate steady at 4.35% during its February meeting as widely expected by analysts. Reserve Bank governor Michele Bullock previously indicates her skepticism regarding the sustainability of inflation returning to the target level. Hence, the market expects the cash rate to remain unchanged for the certain period, and for the RBA to consider a rate reduction, they would require assurance that inflation has indeed reached the target range of 2 to 3%.

Wednesday, 20 March 2024, 20:00 – Fed Interest Rate Decision

In January, the Federal Reserve held interest rates steady and sent a tepid signal that it is done raising rates but also made clear that it is not ready to start cutting rates, describing an uncertain path toward rate cuts in 2024. While Fed officials have indicated that rate cuts are imminent, they emphasize that inflation still needs to decrease further. Due to ongoing high inflation, investors expect the Fed to remain cautious and held rate steady at their current levels as part of strategy to tame inflation while achieving a “soft landing” for the U.S. economy

Thursday, 21 March 2024, 10:30 – SNB Interest Rate Decision (Q1)

The Swiss National Bank (SNB) kept its main interest rate unchanged at 1.75% for the second consecutive meeting in December 2023, citing easing inflationary pressure yet lingering unpredictability in the global economy. Recently, Chairman Thomas Jordan stated that The Swiss National Bank cannot rule out that it will have to raise interest rates again to bring inflation under control. Market could expect potential action from the SNB this month after Swiss annual inflation increased to 3.4% in February, above the SNB’s target level of 2%.

Thursday, 21 March 2024, 14:00 – BoE Interest Rate Decision (Mar)

In January, the UK central bank maintained its interest rates at the current level of 5.25% as widely expected but provided hints of a coming cut. Despite that, the market expects that UK central bank will hold its rate steady for the upcoming meeting as the decision to cut rates is highly improbable at the moment due to the risk of stoking up prices and wages again before inflation is fully conquered.