From Wednesday to Thursday this week, the two major central banks of the United States and the United Kingdom will hold monetary policy meetings to determine the future direction of the global financial market. The general market forecast is that the Federal Reserve may release a signal of interest rate cuts in the early hours of Thursday, and the Bank of England may cut interest rates for the first time in four years.
The interest rate decision announced by the Federal Reserve at 2 a.m. on Thursday will discuss whether there will be a rate cut in September. Recently, Federal Reserve officials have acknowledged that the labor market has cooled and inflation has fallen, but the conditions for a rate cut are maturing. At present, the yield on long-term U.S. Treasury bonds continues to decline. This reflects the market's growing confidence in rate cuts. The Bank of England will hold a secret decision at 7 p.m. on Thursday. Most people believe that the Bank of England will cut interest rates for the first time in four years, while some people think it is not the right time. This is because despite the decline in inflation, service prices are still strong. This brings uncertainty to the rate cut. In normal times, the decision of any central bank can set off a huge wave in the market. What kind of bloody storm will the intensive voices of the two central banks set off this time?