Fasten Your Seat Belts: Here Come the Central Banks

Fasten your seat belts! The focus this week is on central bank monetary policy meetings.There has already been a surprise with the RBA hiking rates by 25bp after a one-meeting pause. It also indicated a risk of further rate hikes.This now shifts attention to the Fed in Wednesday and ECB on Thursday.The only thing that seems certain is that both central banks will hike rates. However, there are differing risks.The FedThe focus on the Fed will not be on an expected 25bps rate increase but on whether it indicates a risk of a pause afterward. Attention will also be on whether the recent banking crisis will tighten credit conditions and influence the Fed going forward.The ECBAs for the ECB, the focus will be on whether it hikes b