Central bank decisions will take centre stage as investors try to determine how close the Fed  is to lowering interest rates

Fed Meeting

The stronger-than-expected U.S. producer and consumer pricing data last week caused traders to reduce their predictions on potential Fed rate reduction in the future.

The focus now is on Wednesday's Fed meeting and any hints regarding the central bank's projections for rate reductions, the strength of the American economy, and the potential for a resurgence in inflation.

Prior to starting to ease, Fed Chair Jerome Powell stated earlier this month that while policymakers have "gained greater confidence that inflation is moving sustainably" towards the central bank's 2% target, they still need further proof that inflation is decreasing.

BoE

In order to gain more clarity on wage growth, which is still better than in the US or the eurozone, the BoE is probably going to bide its time until Thursday's rate decision.

The BoE is presently anticipated by markets to begin reducing borrowing rates in August, following both the Federal Reserve and the European Central Bank, from 5.25%, the highest since 2008.

Investors will be watching any wording changes on placing the Bank Rate of the Bank of England "under review" as well as any change in the vote total following the three-way split in February. And a last-minute reconsideration may result from Wednesday's inflation figure.

Nvidia Conference

Investors will surely be watching attentively for AI-related announcements at the Nvidia GTC developer conference, which is scheduled to begin on Monday. The company's stock has seen a massive surge, so anything that might support this trend will be especially welcomed.

During his keynote speech, CEO Jensen Huang may give participants an early peek at some of the company's newest offerings, such as the next-generation B100 GPU intended for artificial intelligence and high-performance computing applications.

BoJ

With authorities ready to determine whether to stop eight years of zero interest rates in a historic move away from its massive stimulus programme, Tuesday's BOJ meeting might be one of the most important in years.

The major corporations in Japan reached an agreement with labour unions to boost pay by the most in 33 years during yearly salary discussions, according to a story published in the Nikkei newspaper on Saturday. As a result, the BOJ is anticipated to cease its negative interest rate policy this week.

According to the article, the BOJ started organising on Friday to abandon its zero interest rate policy both inside and outside the bank.

(Sources: investing.com, reuters.com)