ECB Interest Rate Decision and Hawkish BOJ in Focus Ahead of Fed Meeting

The European Central Bank (ECB) is set to announce its interest rate decision today at 14:15 CET, with consensus expecting a 25 basis point hike in the main refinancing rate to 2.65% and the deposit rate to 2.5%. This move would bring the ECB's benchmark rate in line with market expectations.

The ECB's decision will be followed by a press conference at 14:45 CET, where President Lagarde is likely to provide more insight into the bank's monetary policy strategy.

Meanwhile, investors are also keeping an eye on the Bank of Japan (BOJ), which has taken on a hawkish tone in recent days. BOJ Board Member Masu recently signaled the need to quickly raise interest rates to a neutral level and exit negative real rate territory, triggering a surge in the yen.