1. The Fed predicts a long period of low interest rates
2. The Bank of Japan has improved estimates of the current state of the economy
3. Australia publishes strong labor market report
The Fed management does not intend to change interest rates in the near future. 4 participants expect interest rates to remain near zero until the end of next year. 13 participants in the meeting believe that rates will remain low until the end of 2023.
Following the results of the meeting today, the Bank of Japan more positively assessed the current state of affairs in the economy. The regulator said that the economy began to recover after a difficult period caused by the coronavirus pandemic, but conditions remain difficult due to the ongoing threats of an increase in the pandemic. Following the meeting, the Bank of Japan left the interest rate unchanged.
In August, unemployment in Australia suddenly fell sharply from 7.5% to 6.8%. Experts expected an increase in the indicator to 7.7%. The number of new jobs increased by 111.0 thousand, against the forecast of -50.0 thousand. Against this background, experts slightly improved forecasts for the recovery of the Australian economy, which were previously overshadowed by the introduction of stringent quarantine measures in Victoria. Positive data on the labor market could not support the national currency. AUD/USD is down more than a 0.4% amid a stronger US dollar.
News to pay attention today:
09:00 GMT. EU Consumer Price Index for August
11:00 GMT. UK: Bank of England interest rate decision
12:30 GMT. United States: number of building permits issued in August
12:30 GMT. US: Weekly Unemployment Benefit Application Report