Not just US Fed, 14 other central banks to hold monetary policy meetings this week. What to expect

Global markets face a pivotal week as 15 central banks, including the U.S. Federal Reserve, Bank of England, Bank of Japan and European Central Bank, line up to deliver policy decisions that could set the tone for currencies, bonds and equities into year-end. Traders are bracing for volatility as interest rate announcements, forward guidance and political crosscurrents converge.

Fed poised for rate cut

The Federal Reserve meets September 17 against a backdrop of a cooling labor market. August payrolls rose by just 22,000, well short of forecasts, and unemployment climbed to 4.3%, its highest since October 2021. Benchmark revisions show job growth slowing earlier than initially thought, dragging the three-month average down to roughly 29,000.


Markets are betting heavily on a rate cut. A 25 basis point reduction is the consensus call, though futures suggest a 66% chance of three or more cuts by December. July inflation prints, 3.3% for producer prices and 2.7% for consumer prices, may limit the Fed’s scope to move more aggressively, market experts said.

Political pressure looms large. The Trump administration has openly criticized Fed Chair Jerome Powell’s timing on easing and recently dismissed Governor Lisa Cook over alleged mortgage fraud, though she remains in place pending investigation. The White House’s nominee, Stephen Miran, faces Senate confirmation hearings tonight. These political dynamics threaten to complicate the Fed’s policy messaging at a delicate moment.

ECB holds after string of cuts

The European Central Bank is widely expected to extend its pause this month after eight rate cuts since June 2024. Policymakers at July’s meeting cited easing domestic price pressures and moderating wage growth. Headline inflation in the eurozone ticked up slightly to 2.1% in August, while core inflation held steady, keeping the ECB on watch for renewed price risks.

Trade frictions complicate the picture. Despite a July agreement with Washington, European exporters now face 15% tariffs on most goods headed to the U.S., with cars hit by levies as high as 27.5% until EU legislation delivers concessions on U.S. industrial and agricultural imports. The Russia-Ukraine war and potential U.S. pressure for tariffs up to 100% on Chinese and Indian goods further cloud Europe’s economic outlook.

Analysts see the ECB holding rates steady through the end of the year as policymakers navigate inflation risks against fragile trade conditions.

Bank of England faces growth-inflation dilemma

The Bank of England, which cut its base rate to 4.0% in August after a contentious vote, meets again September 18. Inflation accelerated to 3.8% in July, even as employment weakened for a sixth straight month. At the same time, long-term gilt yields surged, with the 30-year briefly touching 5.72%—the highest since 1998.

Markets broadly expect the BoE to hold steady, though opinion is split on whether another cut comes before year-end. Any dovish surprise could weigh heavily on sterling.

Bank of Japan stays cautious despite growth pickup

Japan reports September 19, with policymakers balancing improved growth and still-soft underlying inflation. GDP growth accelerated to 2.2% in the second quarter, supported by consumption and capital spending, while inflation eased to 3.1% in July from May’s 3.7% peak.

The BoJ has hinted that sustained tightening may come in 2025, but for now it is expected to keep rates unchanged, while signaling readiness to move if inflation proves durable. Any hint of a shift could lift the yen.

A crowded global central banks calendar

Beyond the majors, 12 other central banks will also set policy this week, including Canada, Brazil, Norway, South Africa, Taiwan and Indonesia. Smaller markets, from Pakistan and Armenia to Costa Rica and Mongolia, are also on deck, making this one of the busiest stretches of central bank meetings in years.

The State Bank of Pakistan meets on Monday, September 15. The Central Bank of Armenia follows on Tuesday, September 16. On Wednesday, September 17, policy decisions will be announced by Bank Indonesia, the National Bank of North Macedonia, the Bank of Canada, the Federal Reserve in the U.S., and Banco Central do Brasil.

On Thursday, September 18, the Central Bank of the Republic of China (Taiwan), the National Bank of Moldova, Norges Bank in Norway, the Bank of England, the South African Reserve Bank, and the Central Bank of Costa Rica will all release their policy decisions. Finally, on Friday, September 19, the Bank of Japan, the Central Bank of Mongolia, and the European Central Bank will conclude the week’s schedule of meetings.

For investors, the sheer clustering of announcements raises the potential for abrupt moves across asset classes.

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