Fed rate cut is likely to be in focus this week for the global markets as inflation cools and growth worries mount Global markets brace for a critical week as central banks and key economic data set the stage for the next phase of monetary policy amid rising uncertainty over growth, inflation, and global trade tensions. In the Americas, all eyes are on the US Federal Reserve, which is widely expected to cut interest rates by 25 basis points, marking a shift toward easier policy as inflation cools and the labor market softens. The Bank of Canada is also likely to ease its stance, while Brazil’s central bank is expected to hold rates steady amid persistent economic challenges. Important data releases such as US retail sales, industrial production, and trade figures will provide fresh insight into the economy’s resilience.
In Europe, the Bank of England is expected to maintain rates amid stubborn inflation, while Germany and France face weakening industrial activity and falling business confidence. Eurozone inflation and industrial output data will be closely watched for signs of economic slowdown.
In Asia-Pacific, China’s monthly data will offer a crucial update on industrial production, retail sales, and fixed asset investment, while US-China trade discussions remain a key focus. The Bank of Japan is set to keep policy ultra-loose as inflation cools, India’s wholesale prices may rebound after deflation, and Australia’s job report along with Indonesia’s policy decision will further highlight the region’s economic pulse.