On June 16th, the central parity rate of the RMB against the US dollar was set at 7.1789, marking a decline of 17 points. This adjustment comes ahead of a highly anticipated week for central bank decisions.
“Super Central Bank Week” Begins
This week is set to be a crucial one for global monetary policy, with the Federal Reserve’s interest rate decision being a key focus. Central banks from Japan, Switzerland, the United Kingdom, and other countries will also hold monetary policy meetings in quick succession.
Currently, the futures market is betting that the Federal Reserve will hold interest rates steady this time, with a probability as high as 99%. Traders are now turning their attention to policy statements, Federal Reserve Chair Jerome Powell’s press conference, and the interest rate dot plot, in an attempt to find signals for future rate cut paths.
Focus on Bank of Japan’s Actions
The Bank of Japan’s actions are also drawing significant market attention. Although the market widely expects the Bank of Japan to maintain interest rates unchanged this week, the focus will be on forward guidance. If Bank of Japan officials emphasize “caution” and “no need to rush into action,” the market may push back expectations for the next interest rate hike until the first quarter of 2026.
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