Global Markets on High Alert as Central Banks Face Scrutiny

The global financial markets are bracing for a critical week as central banks face scrutiny over interest rates, inflation, and volatility.

The US Federal Reserve's latest decision on interest rates is being closely watched by investors and policymakers, with any indication that rates could stay higher for longer having significant implications for borrowing costs, economic growth, and global financial markets.

Australia's Consumer Price Index (CPI) figures are also expected to play a major role in shaping the Reserve Bank of Australia's next policy decision, with economists assessing whether inflation is easing enough to justify another rate cut later this year or whether persistent price pressures could delay further easing.

The sharp overnight sell-off in South Korea's stock market has raised concerns about investor confidence across the region, fueling fears that weakening sentiment could spread to other global markets.