December 9-10: The Federal Reserve interest rate meeting. The market expects a 25 basis point rate cut. December 18-19: The Bank of Japan policy meeting, which may consider a rate hike.
If the Federal Reserve only cuts by 25 basis points, it would be a short-term positive that has already been priced in, leading to a pullback in sentiment. A 50 basis point cut would exceed market expectations, which would be good news and boost sentiment.
If the Bank of Japan raises rates, it would be bad news and have a negative impact on sentiment.
A decision needs to be made before these key dates.
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There are two important upcoming time points:
December 9-10: The Federal Reserve interest rate meeting. The market expects a 25 basis point rate cut.
December 18-19: The Bank of Japan policy meeting, which may consider a rate hike.
If the Federal Reserve only cuts by 25 basis points, it would be a short-term positive that has already been priced in, leading to a pullback in sentiment. A 50 basis point cut would exceed market expectations, which would be good news and boost sentiment.
If the Bank of Japan raises rates, it would be bad news and have a negative impact on sentiment.
A decision needs to be made before these key dates.