G7 central banks prepare for rate decisions amid rising oil prices – Bloomberg
Kyiv • UNN
G7 central banks are preparing for interest rate decisions as oil prices approach $100 per barrel, increasing inflation risks. The US Federal Reserve, the Bank of England, and the Bank of Japan are likely to keep rates unchanged but may signal readiness to raise them in the fall.
Central banks of the G7 countries will make decisions on interest rates this week amid rising oil prices to nearly $100 per barrel, increasing the risks of new inflationary pressure. This is reported by Bloomberg, writes UNN.
Details
The focus will be on the decisions of the US Federal Reserve, the Bank of England, and the Bank of Japan. Although most economists do not expect rate changes in the coming days, investors suggest that as early as September, a number of central banks may return to raising them.
Rising oil and gas prices, massive investments in artificial intelligence, and uncertainty surrounding the tariff policy of US President Donald Trump are cited among the main factors that could accelerate inflation again.
The Fed may keep the rate but leave a "hawkish" signal
According to Bloomberg Economics, the Federal Reserve is likely to keep the interest rate unchanged but will signal readiness for a possible increase in the fall.
Analysts expect Fed Chairman Kevin Warsh to emphasize that inflation still exceeds the desired level. At the same time, previously released softer-than-expected US inflation data could serve as an argument against raising the rate this month.
In addition to the Fed's decision, the US will also release data on second-quarter GDP, the PCE inflation index, and consumer spending this week.
Also in focus are Japan, Europe, and Asian countries
In Japan, investors await the Bank of Japan's decision after the release of data on industrial production, retail sales, and inflation in Tokyo. Meanwhile, the central banks of Singapore and Pakistan will also hold monetary policy meetings.
In the eurozone, preliminary data on economic growth and inflation will be released this week. According to forecasts, the currency bloc's GDP grew by 0.2% in the second quarter, and annual inflation in July may have accelerated to 2.9%.
The Bank of England is also expected to keep the rate unchanged, although some committee members may support a rate hike due to inflationary risks.
Decisions are also expected in other regions of the world
During the week, monetary policy decisions will also be made by the central banks of Ukraine, Chile, Colombia, Mozambique, Malawi, and other countries.
In addition to regulator meetings, investors will monitor foreign trade statistics from South Korea, Mexico's economic indicators, and inflation in Brazil, which could affect further expectations regarding global monetary policy.