Central banks to announce policy decisions this week

This week, major central banks are set to announce their decisions on interest rates. The Federal Reserve (Fed), Bank of Japan (BOJ), Bank of England (BOE), and Swiss National Bank (SNB) are all involved. The BOJ will start the week with an expected decision to keep rates unchanged. They are still reviewing the outcomes of recent wage negotiations, which are important for their future rate hikes. While May may be too soon for a change, they are likely planning for a move by summer. Next up is the Fed, which is also expected to maintain current interest rates. Analysts do not expect any cuts in May, but softening economic data has raised the possibility of a change in June. Currently, there is an 80% chance of this happening. It remains to be seen whether the Fed will adjust their plans to align with market expectations. On Thursday, the SNB is anticipated to reduce its policy rate to 0.25%. Swiss inflation is stable, but the central bank is concerned about the strength of the franc. Traders believe this rate cut will be the last from the SNB for now, as they do not plan to return to negative rates. Lastly, the BOE is also expected to keep rates steady. However, the possibility of a rate cut in May is gaining traction, with a 64% chance currently estimated. Persistent inflation is a central issue for the BOE, particularly as they await next week's crucial inflation report, which will guide their decisions for the coming months. Only two rate cuts are expected for the BOE this year.