The market this week was graced by three policy meetings from major central banks that are sure to rock the currency market which is currently dominated by the strengthening US dollar.
Here are some of the expectations made by analysts ahead of the policy meeting of these three central banks.
1. Central Bank of New Zealand (RBNZ)
The RBNZ is expected to raise interest rates for the fourth time by 25 basis points at a policy meeting to be held on Wednesday (Asian session).
There are analysts who expect a rise of 50 basis points, but due to supply constraint factors, rising prices, the closure of Covid-19 in China and slowing global growth, it is unlikely to happen.
2. Central Bank of Canada (BOC)
The BOC is likely to raise the rate by 50 basis points at a policy meeting also held on Wednesday (New York session).
With inflation at a 30 -year high, the BOC will certainly signal to tighten further after the hike made this week.
3. European Central Bank (ECB)
In contrast to the RBNZ and BOC, the ECB is not expected to raise interest rates at its upcoming meeting on Thursday (European session).
Although inflation is rising, European economic growth is hampered by sanctions on Russia, supply chain issues and rising food and energy costs.
Still, investors are expecting a clearer signal of a rate hike this year by ECB President Christine Lagarde.
