Central bank decisions this week are poised to affect currencies, stocks, and bonds. Here’s what’s happening over the next 7 days:

The Bank of Japan (BoJ) Monetary Policy Meeting is scheduled for January 23-24, 2025. The yen rose against the dollar on Tuesday as traders anticipated a ~90% chance of an interest rate hike despite tariff concerns tied to Donald Trump’s policies.

The US Federal Open Market Committee (FOMC) will meet on January 28-29, 2025. While a rate cut is unlikely this month, a reduction in March or May remains a possibility.

The Bank of Canada (BoC) is expected to lower its benchmark interest rate by 25 basis points to 3.00% on January 29, 2025. This decision aligns with growing economic concerns following President-elect Donald Trump proposed 25% tariff on Canadian exports.

The European Central Bank (ECB) Governing Council will meet on January 30, 2025. A rate cut appears to be likely, albeit policymakers will be relieved that potential broader U.S. trade tariffs were avoided.
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