The Federal Reserve and many other central banks around the world are expected to lower interest rates following the US presidential election. The outcome of the election, which is still uncertain, will have a significant impact on global economic policies.
In the US, the Federal Reserve is expected to announce a quarter-point rate cut, with another cut anticipated in December. The decision will be influenced by weak hiring data and the need for less restrictive policy in the current economic conditions.
Other central banks, including those in the UK, Sweden, the Czech Republic, and Brazil, are also expected to cut rates in the coming week. However, with the close-run presidential race in the US, policymakers may need to wait for a settled result before making any significant decisions.
In terms of economic data, the US will release figures on third-quarter productivity growth, the service sector, and consumer sentiment. Canada will also release its labor force survey for October, providing insight into the country’s economic and labor market conditions.
In Asia, central banks in Pakistan, Australia, and Malaysia are expected to make decisions on interest rates. South Korea, the Philippines, Thailand, Vietnam, and Taiwan will release inflation data, while Japan and China will publish wage and trade data.
In Europe, the UK’s Bank of England is expected to announce a quarter-point rate cut, following the Labour government’s budget plans. Sweden’s Riksbank is also anticipated to cut rates, as the economy remains stagnant and inflation falls below target.
Overall, central banks around the world are closely monitoring economic conditions and political developments, as they navigate uncertain global economic trends and the potential impact of the US presidential election.