This week the focus is on monetary policy in Japan, the United States, and the United Kingdom. The Federal Open Market Committee is expected, on average economist forecasts, to hold its policy rate target range at 3.50%-3.75%, but after August producer and consumer price indices showed inflation accelerating on higher crude oil prices stemming from the prolonged US-Iran conflict, short-term money markets have priced in close to a 90% chance of a rate hike at the September meeting. The Bank of England is expected to hold its policy rate at 3.75% at its monetary policy meeting, with markets pricing in two rate hikes this year. The Bank of Japan is seen as near certain to raise its policy rate by 25 basis points to 1.25% at its monetary policy meeting, and Governor Ueda's press conference will be scrutinized for signs on whether the pace of rate hikes may accelerate. Also due this week are US retail sales and CPI, euro-area CPI and the ECB's CPI forecasts, and in Japan core machinery orders, the trade balance, and CPI.
