While we wait for the tightening
- Financial markets await the US Federal Reserve. The meeting on Wednesday is expected to finally announce a passive quantitative policy tightening, which will of course be an extremely exciting decision.
- In the meantime, the Canadian who heads the Bank of England will be speaking in Washington. Investors are contemplating a UK economy where growth will probably be revised up, where there is full employment, and where the inflation rate is above target. Is political uncertainty enough to keep the BoE on hold?
- Investors will have the opportunity to examine the extent of US isolationism over the next couple of days. The US Secretary of State has indicated that the US many not leave the Paris climate accord after all. US President Trump has a series of meetings around the United Nations gathering.
- Eurozone final August CPI is due, with the consensus expectation for a 1.5% y/y rate. To any normal person that would seem to be in the range around the ECB's rather imprecise target.