Bank of England and Federal Open Market Committee coming up next week

A heads up on the BoE and Fed next week via Westpac:

• While the market has moved to price a rate hike by the Bank of England of 15bps to 0.25%, the most significant development for global financial markets will be the FOMC's formal taper announcement. Based on comments made by FOMC members before the pre-meeting blackout, this decision will put in place a timeline to end asset purchases around mid-2022.
• While the market has priced in quick follow-through for interest rates -- a fed funds rate hike is now priced by July 2022 -- such a rapid move is far from certain. Chair Powell and the FOMC have made clear time and time again they also see global influences for inflation as transitory and that the US labour market has considerable ground to make up.
• Very strong growth in employment as well as rising inflation expectations are likely necessary to see the Committee act with haste following the end of the taper.

The Federal Open Market Committee is on Wednesday.

The Bank of England on Thursday

I'll have more on approach.