ECB Decision and US Inflation Data Set to Dominate Economic Calendar
This week's economic calendar is dominated by Friday's release of US inflation data for August. The figures could tip the balance towards either a pause or an interest rate hike at next week's meeting, according to Federal Open Market Committee (FOMC) policymakers.
According to Christopher Waller, the disinflation process is progressing, and core inflation looks even better than the headline indicators suggest. If the upcoming CPI inflation reading doesn't present a negative surprise, he will likely support keeping interest rates unchanged at the next meeting.
The European Central Bank (ECB) will also make its decision on Thursday. A rate hike is currently fully priced in by markets, and attention will focus on any guidance regarding subsequent moves. The market expects a total of three upward moves by mid-2027.