Central Banks to Make Key Announcements Amid Rising Inflation Concerns

Next week will be crucial for major central banks and economies around the world. The Canadian Central Bank (BoC) is looking to next week's inflation report, which is expected to show a rise in gasoline prices, driving recent gains.

The Federal Reserve (FOMC) policy announcement on Wednesday is also highly anticipated. Given the Fed's avoidance of forward guidance amid ongoing uncertainties, incoming economic data has been key in shaping rate expectations. The August CPI report saw core inflation hotter than expected at 0.3% M/M (exp. 0.2%), resulting in money markets assigning a rate hike with a 90% probability.

The Bank of England (BoE) is also set to make an announcement on Thursday, which could be influenced by the August UK inflation print. The headline is expected to surpass the 3.0% mark and the BoE's view of 2.8%, to around 3.2% Y/Y.

In other news, the Bank of Japan (BoJ) will announce its policy decision on Friday, which may be influenced by the August Japanese CPI print. The European Central Bank (ECB) is also expected to release data on inflation and industrial production in the Eurozone.