Market participants are eagerly awaiting the monetary policy meetings of the Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BOJ) this week. They are seeking clues from policymakers regarding the future direction of the interest rates.
Of particular interest is the ECB’s interest rate decision following its policy meeting on Thursday. It is widely expected that the ECB will implement a 25 bps rate hike at this meeting, which is seen as a certain outcome by market participants. However, they are now focused on assessing how high the rates will rise and how long they will remain at their peak, as it is believed that the ECB is nearing the end of its rate-hiking cycle.