Fed, BOJ, BOE Prepare Key Interest Rate Decisions This Week

This week features key central bank policy decisions from the Bank of Japan, Federal Reserve, and Bank of England, with market expectations varying: the BOJ may raise rates or signal a future hike amid persistent inflation and a weak yen; the Fed is widely expected to confirm a September rate cut following recent positive U.S. employment data; and the BOE is split on whether it will ease policy but likely to adopt a cautious stance. Meanwhile, optimism in U.S. stock markets is high, though some caution is advised as the July 9 deadline for President Trump’s reciprocal tariffs approaches, with only limited trade deals finalized so far, raising uncertainty about potential extensions or tariff reinstatements. In Asia, Taiwan and Thailand are set to release inflation and trade data, with Taiwan's exports expected to remain robust despite potential trade disruptions from the tariff deadline. Overall, the interplay of central bank decisions, strong U.S. economic indicators, and looming trade negotiations under President Trump are shaping cautious optimism amid mixed signals of global economic growth and inflation pressures.