Central bank news is dominating the wires.
The ECB is holding an emergency meeting to discuss fragmentation issues and presumably a response to cure them. Some see this as another “whatever it takes” moment, so European bonds and stocks have rallied on the news.
The FOMC completes its two-day meeting today. The market expects a 75-basis point rate hike. The policy directive and summary of economic projections will be released at 2:00 p.m. ET and Fed Chair Powell’s press conference will follow at 2:30 p.m. ET.
The Shadow Committee for the Bank of England reportedly expects a 50-basis point rate hike at Thursday’s meeting against expectations for a more modest 25-basis point increase.
Reserve Bank of Australia Governor Lowe expects CPI to increase further and believes policy should respond to the CPI pressure in a decisive manner.
The Bank of Japan continues to adhere to a yield curve control policy.