- Interest rates are expected to rise as Central Bank meetings are scheduled this week for Australia, the US, and the UK
- All countries are aiming to tame inflation, after Russia’s invasion of Ukraine
- Australia will meet on Tuesday and is expected to raise the cash rate for the first time in a decade
- The US Federal Reserve will reach a decision on Wednesday and is anticipated to hike rates by 50 basis points
- The UK is expected to hike rates as it finds the balance between taming inflation and avoiding a recession
All eyes are on interest rates this week as Central Bank meeting’s are scheduled for Australia, the US, and the UK.
All of the countries have a similar goal to curb inflation, which has spiked since Russia’s invasion of Ukraine.
The week will kick off with Australia, with the Reserve Bank of Australia due to meet tomorrow, May 3. Many are expecting the cash rate to rise for the first time in a decade.
Meanwhile, the US Federal Reserve is facing increased pressure to hike interest rates after the PCE price index highlighted a four-decade high in inflation of 6.6 per cent. It will meet tomorrow and Wednesday, it’s expected to hike rates by 50 basis points.
Over in the UK, the Bank of England is finding the right balance between taming inflation whilst avoiding a recession. Inflation is currently sitting at seven per cent, which is three times its target.
It is meeting on Thursday, where interest rates are expected to be raised.
In a differing movement, Russia sharply cut its interest rate to 14 per cent. It comes as the country tries to avoid a recession after western sanctions. However, inflation is also a big concern for the country, after reaching 17.6 per cent in April.