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Interest rate decisions in focus: what will the central banks do?
Interest rate decisions in focus: what will the central banks do?
(c) ECB Xinhua / Eyevine / picturedesk.com

Interest rate decisions in focus: what will the central banks do?

This week, the markets are eagerly awaiting the upcoming interest rate decisions. The Fed in the USA will make the first move today, Wednesday. For the first time in the current cycle, no increase in the key interest rate is expected. For tomorrow’s interest rate decision by the ECB, on the other hand, the market expects a further rate hike of 25 basis points.

“Brinkmanship” – Agreement on Debt Ceiling
“Brinkmanship” – Agreement on Debt Ceiling
(c) EVELYN HOCKSTEIN / REUTERS / picturedesk.com

“Brinkmanship” – Agreement on Debt Ceiling

The representatives of the Democrats and the Republicans have reached an agreement in the dispute over the debt ceiling in the USA. The cap of $31,400 billion is to be suspended until 2025. Subject to approval in the House of Representatives and Congress, the agreement is positive for the financial markets. However, another effect could weigh on the markets further down the line.

Meager Growth
Meager Growth
(c) SAUL LOEB / AFP / picturedesk.com

Meager Growth

Global growth is likely to cool significantly in the second quarter. At the same time, recession risks remain uncomfortably high, as Chief Economist Gerhard Winzer writes in his market commentary. The further course of negotiations on the US debt ceiling is also likely to cause tension on the market.