This week, the world's five major central banks are set to announce their interest rate decisions. The market widely expects the Federal Reserve to maintain the federal funds rate unchanged on Wednesday, with only a 10% bet on a 25 basis point hike, although bets for a rate increase in December are higher. The European Central Bank is expected to keep the deposit rate at 2.50% on Thursday. The Bank of Japan is anticipated to maintain its policy rate at 1.25% during its two-day meeting ending on October 30. Meanwhile, the market sees an 81% probability that the Bank of Canada will raise rates by 25 basis points to 2.50% on Wednesday, and the Reserve Bank of New Zealand may also raise rates by 25 basis points to 3.0% on the same day. In terms of data, Japan's core CPI excluding fresh food rose by 2.1% year-on-year in September, exceeding the 2% target for the first time in nine months, up from 1.7% in August; the core CPI excluding fresh food and energy increased by 2.4%, higher than August's 1.9%. Chris Weston, head of research at brokerage Pepperstone, stated that forward guidance may be more important than the decisions themselves, with the key being how policymakers shape expectations for subsequent meetings.
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