The FOMC and BOJ meeting will be among the key events next week, along with developments at the Bank of England, Japan’s CPI and U.S. retail sales. Market participants are also said to be watching the Federal Reserve’s blackout period, when officials refrain from making public comments.
Among next week’s scheduled events, expectations are building that the Federal Open Market Committee (FOMC) will move to raise rates, with inflation data and comments from Chair Wash in focus. While market participants remain divided over the timing and pace of a rate hike, they are signaling a positive bias.
The Bank of Japan’s monetary policy meeting is expected to signal a hawkish rate-hike outlook, while reports say U.S. Treasury Secretary Bessent has applied pressure in response. The BOJ’s policy direction could affect the yen and domestic economic conditions.
Japan’s CPI is expected to move back toward 2% for the first time in 8 months, with higher oil prices, a weaker yen and rising labor costs cited as contributing factors.
U.S. retail sales are expected to recover from the sharp decline in the previous reading, with the impact of back-to-school shopping and summer sales drawing attention. The Bank of England is also expected to leave its policy rate unchanged, although some observers have warned of upside risks to inflation.
The Federal Reserve’s blackout period, during which officials refrain from making public comments, is scheduled to continue through the 17th. Attention is therefore focused on when official comments will resume.