Central banks in Australia, Britain and Sweden will meet next week, as markets assess how much leeway the U.S. Federal Reserve has to cut rates this year.
Any signs in the May 10 report that higher prices are weighing on sentiment could encourage the Fed to keep rates elevated, adding to recent pressure on stocks and bonds. While earlier this year rate-setters talked openly about the possibility of rate cuts, hard data and business surveys have painted a pretty mixed picture of price pressures in Britain’s economy, much like in the United States.
Elsewhere in Europe, Sweden is seen as likely to start cutting rates on May 8 as inflation falls faster than expected.The Reserve Bank of Australia meets on May 7 and it’s poignant timing after Q1 inflation were hotter than expected, after the RBA in March watered down a tightening bias. Even so, the risk of another rate hike has done little to help the Aussie, which continues to struggle below the $0.66 level against the dollar.Supporters of Panama's presidential candidate for the Realizando Metas party, Jose Raul Mulino, attend a campaing rally in Panama City on May 2.Panama elects a new president on May 5, with eight candidates and a host of thorny issues for whoever wins.