Finance industry, commercial banking, and institutional lending sector examined
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Central Banks on the Move 🕰️
With the European Central Bank's rate decision in the rearview mirror, the stage is set for several other central banks to reveal their policy tricks up their sleeves in the coming days. The big question on everyone's lips is what the US Federal Reserve will announce on Wednesday evening. With Donald Trump's inauguration just around the corner, expect the fresh face in the White House to play a significant role in the Fed's strategy for the upcoming year, according to Martin Pirkl, foreign exchange correspondent for the Börsen-Zeitung, in the podcast 7TageMärkte.
Although a 25 basis point rate cut is a strong possibility in December, the Fed might also declare a rate pause at the beginning of the year to observe Trump's early moves in office. Martin says, "Many of his announced plans could likely fuel inflation."
Japan and England's Moves 🌟
In Japan, the Bank of Japan has already hiked interest rates twice this year, and another rate hike is looking highly likely - though whether it'll be decided in December or at a later date is a topic of discussion among central bankers on Thursday. Meanwhile, signs indicate a rate pause in the UK, according to Pirkl. However, Bank of England governor Andrew Bailey has recently foreseen four rate cuts by 2025. "That's more than the markets had anticipated," says Pirkl, who elaborates on the conditions tied to Bailey's rate forecast in the podcast.
The latest episode of 7TageMärkte also dives into the hot topic of the planned acquisition of About You by Zalando and Douglas' return to the stock market. Security emerges as a key focus at the EU summit, and the overview of the most crucial dates in calendar week 51 can be found in the current episode of 7TageMärkte. Stay tuned for more insights from 7TageMärkte! 🎙️🚀
- "In the finance world, speculations are rife about the Bank of Japan's potential move in 2025, as Bank of England governor Andrew Bailey has forecasted four interest rate cuts during this period. This prediction, as per Martin Pirkl, is more than the markets anticipated."
- "Looking ahead, the fate of Japan's economy in 2025 might heavily rely on the interest rates announced by the Bank of Japan, especially considering the potential for increased inflation based on Trump's policies, as suggested by Martin Pirkl."
- "While the US Federal Reserve is expected to announce its policy on Wednesday, it's also crucial to monitor the interest rate decisions of other central banks like the Bank of Japan, which could significantly impact the global finance landscape by 2025."
