The US Federal Reserve’s policy meeting opened on Tuesday, 27 October, with its decision due on Wednesday. Markets widely expect rates to be held steady this week after September’s increase, with about an 11% chance priced for a hike now and about 82% for a hike in December, according to Reuters and CME FedWatch data.
The meeting comes with the Fed’s preferred inflation gauge, September PCE, and third-quarter US GDP due on Thursday, alongside earnings from Coca-Cola, Visa and Boeing this week and Alphabet and Microsoft on Wednesday. The European Central Bank decides on Thursday and the Bank of Japan on Friday, making this one of the busiest central bank weeks of the year.
For Pakistan, the Fed’s signals matter directly: they shape the dollar, oil prices and foreign investment flows, all of which feed into domestic inflation and the rupee. A hawkish tilt would keep global borrowing costs higher for longer, while a softer tone could ease pressure on emerging markets.
Sources: Reuters, Newspim. Written in our own words for information only.