Central Banks Face Pivotal Policy Week

The video discusses the current and future rate hike strategies of major central banks, including the Federal Reserve, European Central Bank, and Bank of Japan. The Fed is back on the rate hiking path, with a potential 25 basis point increase. The ECB is expected to hike rates to 3.75%, with uncertainty about future moves. The BOJ remains on hold, waiting for stable inflation above 2%. Meanwhile, Chile is preparing for a significant rate cut, reflecting a shift in monetary policy among Latin American central banks.

What was the Federal Reserve's approach in July and June regarding interest rates?

• They increased rates by 50 basis points.

• They maintained rates without any change.

• They cut rates to stimulate the economy.

• They paused rate hikes to assess impacts.

What is the expected terminal rate for the ECB after the potential September hike?

• 3.50%

• 4.00%

• 4.25%

• 3.75%

What is the Bank of Japan's condition for changing its current policy stance?

• Unemployment rate below 4%

• Inflation rate consistently above 3%

• Inflation rate sustainably above 2%

• GDP growth rate above 5%

Which central bank is expected to cut rates by 100 basis points?

• European Central Bank

• Federal Reserve

• Bank of Japan

• Central Bank of Chile

What percentage of economists believe the BOJ will leave all policy levers unchanged?

• 80%

• 70%

• 60%

• 90%