A 'super week' is coming, with rate meetings in the U.S., U.K. and Japan, plus Big Tech earnings

[Financial News] Global financial markets are closely watching this week as the central banks of the United States, the United Kingdom and Japan hold monetary policy meetings. The Federal Reserve and the Bank of England (BoE) are widely expected to keep benchmark rates unchanged, while the Bank of Japan (BOJ) is seen as likely to raise rates once more before year-end. With growth data from the United States and Europe, along with Big Tech earnings, also due, this week is shaping up to be a 'super week' for global markets.
According to the Financial Times (FT), the Fed will hold a Federal Open Market Committee (FOMC) meeting on July 28-29 local time to decide on its benchmark rate. The BoE will meet on July 30, and the BOJ will hold its policy meeting on July 30-31.
In the United States, this will be the second FOMC meeting since Kevin Warsh took office as chair. The current target range for the federal funds rate is 3.50% to 3.75%. FT said it does not expect the Fed to adjust rates at this meeting, given recent inflation trends.
The U.S. Consumer Price Index (CPI) rose 3.5% from a year earlier in June, while core CPI increased 2.6%. Price pressures have not fully eased, but they are not strong enough to justify rushing into further tightening, observers said.
The BoE is also likely to keep its benchmark rate at the current 3.75%. Britain's June CPI slowed to 2.6% from the previous month, while unemployment and wage growth have also shown stable trends.
However, if military conflict between the United States and Iran pushes up international energy prices again, the year-end rate path could change. FT reported that markets are pricing in at least one more rate hike by the BoE by the end of the year.
The BOJ is also likely to leave rates unchanged at this meeting, but expectations for another hike this year remain. In June, the BOJ decided to guide its short-term policy rate to around 1.0%, and wage growth and energy prices are seen as supporting a tighter policy stance.
In a survey of experts conducted by FT this month, most respondents said they expect the BOJ to raise its benchmark rate once more to 1.25% by the end of the year.
Major economic indicators and corporate earnings will also be released throughout the week. The United States and the European Union (EU) will publish preliminary second-quarter Gross Domestic Product (GDP) figures on July 30. Markets are watching closely to see how the war between the United States and Iran, as well as rising oil prices, have affected growth.
Earnings reports from companies will also continue to roll in. Airlines will have to show how they are coping with higher costs from rising oil prices, while U.S. Big Tech firms will need to demonstrate the results of their massive Artificial Intelligence (AI) investments. Microsoft and Meta Platforms are scheduled to report on July 29, followed by Apple and Amazon on July 30, making these releases a key test of whether AI investment will continue and where markets may head next.

[email protected] Kim Kyung-min Reporter