Next week is all about central banks with FOMC in focus - ING

Research Team at ING, suggests that the next week is all about central banks, with a total of five key DM meetings taking place. 

Key Quotes

“Most of the focus will be on the US, where persistently low inflation, financial market volatility and an uncertain growth outlook mean there is little chance of any action from the Federal Reserve. That said, the labour market is a clear positive, so it will be interesting to see if the Fed remains upbeat on job prospects. With no hike on the cards though, markets may latch onto any changes in the ‘dot diagram’, which is likely to be revised to show a slower pace of normalisation in 2016.

Elsewhere, we think that the Bank of Japan’s preference will be to remain on hold and wait to see how the dust settles on negative rates, heading into their next meeting in April. In the UK, we expect nothing new from the Bank of England next week and, given that the EU referendum is still three months away, we see little prospect of action until after the vote. If the UK leaves, we expect a rate cut almost immediately, but should the UK vote to stay an EU member, we think November remains a possibility for a rate hike.

In Germany, politicians will digest the outcomes of three regional elections and the possible impact on Chancellor Merkel’s stance on the refugee crisis. On this topic, European leaders will meet once again next week, but it is still far from certain that they can agree on a possible deal between the EU and Turkey.”