RBA and BoE Take Center Stage Amidst U.S. Light Week

The Week Ahead: Week of 6thMay(GMT+2)

RBA and BoE Take Center Stage Amidst U.S. Light Week

Tuesday, 7th May2024, 06:30

RBA Interest Rate Decision (May)  

During the March meeting, Australia's central bank kept its interest rates steady at 4.35% and adopted a more relaxed approach towards tightening, suggesting growing confidence in inflation reaching its target despite economic deceleration. Following the release of March's CPI data, hopes for an imminent rate cut have dwindled, with investors anticipating that the board is unlikely to make any changes to interest rates in the upcoming meeting.

Thursday, 9thMay2024, 13:00

BoE Interest Rate Decision (Apr)

During the last meeting, the Bank of England maintained its interest rate at 5.25%. Governor Andrew Bailey emphasized the importance of ensuring that inflation returns to the 2% target and remains there, stating that the current situation does not warrant a rate cut. Financial markets anticipate that the first rate cut will likely occur in September, assigning minimal probability to a rate cut on May 9. Therefore, it is unlikely for the Bank of England to deliver any unexpected developments.

Friday,10thMay2024, 08:00

UK GDP (MoM) (Mar)

In February, the UK's Gross Domestic Product (GDP) saw a monthly expansion of 0.1%, in line with expectations from a Reuters poll of economists. This suggests that Britain's subdued economy is advancing towards emerging from a mild recession. With analysts expecting stability in the UK, as evidenced by recent data releases from the nation, a potential continuation of this trend is expected in upcoming data release.

Friday,10thMay2024, 14:30

Canada Unemployment Rate(Apr)

Canada's unemployment rate has surged to a fresh 26-month high of 6.1% for March. This increase is accompanied by job listings remaining significantly below previous highs, and recent trends in employee surveys showing a notable weakening. The rising unemployment rates across the nation are primarily propelled by sustained growth in labor supply rather than a widespread decline in hiring. Consequently, the country's job market is expected to continue cooling throughout 2024.