Fed funds rate forecast hints at increased upside risks to dollar

This week the Federal Reserve, Bank of Japan, Reserve Bank of Australia, Bank of England, Norges Bank and Swiss National Bank announced policy rates. Economists at Brown Brothers Harriman (BBH) analyze the impact these central bank meetings may have on foreign exchange markets.

Fed policy rate

The Federal Reserve decided to keep the funds rate unchanged this week, but the market generally expects the possibility of a rate cut in the coming months. This expectation may lead to upside risks for the US dollar.

Bank of Japan policy rate

The Bank of Japan also decided to keep policy rates unchanged, but as global economic growth slows, the Bank of Japan may consider further easing monetary policy to stimulate economic growth.

Reserve Bank of Australia policy rate

The Reserve Bank of Australia announced this week it would cut its policy rate to a record low in response to pressure from slowing domestic economic growth. This move may have an impact on the Australian dollar exchange rate.

• Bank of England policy rate
• Norges Bank Policy Rate
• Swiss National Bank Policy Rate

The policy interest rate decisions of the above central banks may cause fluctuations in the foreign exchange market. Investors need to pay close attention to the policy trends of various central banks and changes in the global economic situation.