Central banks' decisions dominate economic updates this week

This week, central banks will be in focus with decisions from the Federal Reserve and the Bank of Japan on Wednesday, and the Bank of England on Thursday. Economic data, including U.S. retail sales and U.K. labor market stats, will also be released. The Fed is expected to pause its quantitative tightening and maintain its current interest rates, with projections indicating higher inflation and slightly weaker growth. In Germany, significant votes on a proposed fiscal expansion are scheduled, potentially leading to a stimulus of 3-4% of GDP by 2027. The Bank of Japan is likely to keep its rates steady, while the Bank of England is expected to maintain its rate at 4.5%. Additionally, a call between Trump and Putin may signal developments in geopolitical discussions.