Seven major central banks, including the Federal Reserve, are set to announce rate decisions next week. This comes as war-driven oil price spikes reignite concerns about global inflation.
The packed economic calendar includes the Reserve Bank of Australia on March 17, followed by the Bank of Canada and the Fed on March 18. The Bank of Japan, Swiss National Bank, and European Central Bank will announce their decisions on March 19.
Previously, markets anticipated steady interest rate cuts this year, partly due to artificial intelligence's disinflationary potential. However, recent geopolitical events and disrupted energy shipments have altered this outlook.
Rising oil prices are forcing traders to reassess interest rate expectations. Policymakers, wary of repeating past inflation missteps, may act swiftly to curb price pressures.
Economists suggest central banks will closely assess the impact of oil shocks, which simultaneously affect growth and inflation. Their response will depend on which factor proves more significant, as such shocks are often transitory.
Historically, the Federal Reserve and potentially the Bank of Japan have significantly influenced Bitcoin prices. The BOJ's upcoming decision could be particularly pivotal for both Japanese markets and Bitcoin.
