Central bankers from around the world are set to gather in Jackson Hole, Wyoming this week to discuss economic outlooks and monetary policies. With key economic data expected to be released, volatility in financial markets is likely to increase.
Investors are eagerly awaiting signs of a global economic recovery, including cooling inflation, lower interest rates, and positive growth indicators. The Eurozone will release final consumer price index (CPI) data for July, with expectations that inflation will remain high at 2.6%. This may impact the European Central Bank’s decision on a potential rate cut in September.
Both Germany and France will release flash manufacturing and services PMIs, with positive signs of economic recovery seen in recent months. However, manufacturing activities across the Eurozone are expected to remain in contraction. In contrast, the UK’s manufacturing and services sectors have been expanding, signaling growth in the UK economy.
In the US, the Federal Reserve will release meeting minutes for August, providing insight into its policy path. The Fed is expected to cut interest rates in September, with Chairman Jerome Powell likely to signal this move at the Jackson Hole Symposium. US flash manufacturing and services PMIs for August will also be released, providing further insight into the world’s largest economy.
In the Asia Pacific region, the PBOC is expected to keep loan prime rates unchanged, while the RBA in Australia will release meeting minutes for August. Manufacturing and services PMIs from Japan and Australia are expected to remain in contraction, with Japan’s CPI anticipated to rise slightly.
Overall, the upcoming economic data releases and central bank meetings are expected to have a significant impact on global financial markets and investor sentiment.
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