Central Bank Meetings and US, UK, China Inflation Data Watch

 | Apr 08, 2022 06:30

h2 Central bank meetings and US, UK, China inflation data watch

Central bank meetings will be in abundance in the coming week across the eurozone, Canada, New Zealand, South Korea and Singapore. Other key economic events include US, UK, and mainland China inflation releases for March as well as US retail sales and industrial production. Also watch out for UK March GDP data while the advance Q1 GDP in Singapore offers a first look into 2022 growth conditions in the APAC region.

With the US Fed gripped firmly by inflation concerns according to the latest March Fed FOMC minutes, next week's US CPI data will be amongst the top watched economic releases around the globe. As far as March's PMI data suggested, US firms' selling prices continued to climb last month, notching up the joint-sharpest rise since data collection began in October 2009. Consensus expectations similarly point to quicker inflation against the backdrop of the Ukraine war and the consequent commodity price hikes. Accompanying the CPI and PPI data updates will also be Fed comments through the week, rhetoric crucial in guiding the market with respect to their accommodative removal plans, as well as retail sales and industrial production updates to guide on economic trends in March.CPI

More central banks are meanwhile expected to follow the Fed's lead in taking a more aggressive policy stance the coming week. Specifically, the Bank of Canada (BoC) and Reserve Bank of New Zealand (RBNZ) are both expected to raise interest rates in the fight against inflation, with the BoC potentially delivering more than the 25-basis points moves that we have seen of late from other central banks. The European Central Bank's (ECB) post meeting communique will also be crucial following recent signals of rate hike intentions, though any moves are not expected until later 2022. The Monetary Authority of Singapore's (MAS) exchange rate settings will also be in focus.

Finally, GDP data from the UK and Singapore come at an interesting time, with both regions showing continued growth despite indications of a slowdown in global growth in March, according to the latest PMI data.

h2 Cost of living crisis to worsen/h2
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The coming week sees inflation updates for the US, mainland China and the UK, which are expected to show the cost of living crisis intensifying. Worse is yet to come, as signalled by new highs for many PMI survey price indices, which showed business costs rising at a rate not seen since 2008 in March. These higher costs are being increasingly passed on to customers, leading to record rates of inflation in the US and Europe.