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Week ahead: Focus on RBA, BOJ, and BOC rate statements and US Employment Change

March 6, 2023

Major central banks are setting the stage for global markets this week, as key economies such as Japan and Australia will announce changes to their benchmark interest rates. The markets will also closely observe the US and Canada Employment Change. Monitoring these key metrics worldwide can help traders make better trading decisions.

Here are key events to watch out for:

Consumer Price Index (CPI) | Switzerland (March 6)

In January 2023, the CPI in Switzerland rose by 0.6% from the previous month. The figure for February is projected to be 0.4%.

Reserve Bank of Australia (RBA) Rate Statement | Australia (March 7)

The RBA increased the cash rate by 25bps to 3.35% in February, the ninth increase since May 2022. 

Analysts expect the RBA to raise interest rates by another 25bps to 3.6%. 

ADP Non-Farm Employment Change | US (March 8)

US private businesses generated 106,000 jobs in January 2023, substantially lower than the 253,000 jobs created in December 2022. 

Analysts anticipate the US to add 168,000 jobs for February.

Bank of Canada (BOC) Rate Statement | Canada (March 8)

In its first meeting of 2023, the BOC increased its overnight rate by 25bps to 4.5% and suggested that it would conclude its aggressive tightening cycle if economic developments conformed to the central bank’s outlook. 

For this month, analysts project that the BOC will keep the rates unchanged.

Bank of Japan (BOJ) Rate Statement | Japan (March 10)

During its January meeting, the BOJ unanimously decided to retain its key short-term interest rate at -0.1%, and maintain the 10-year bond yields at approximately 0%. 

For this month, analysts predict that the BOJ will keep the rates unchanged.

Gross Domestic Product (MoM) | UK (March 10)

For the first time in three months, the British economy shrank 0.5% month-on-month in December 2022.

Analysts predict the UK GDP to be 0.0% in January 2023.

Employment Change | US and Canada (March 10)

In January 2023, the US economy added an unexpected 517,000 jobs, marking the most jobs created since July 2022, while the unemployment rate fell to 3.4%, the lowest since May 1969. During the same period, Canada added 150,000 jobs, the highest since February last year, and maintained an unemployment rate of 5%. 

For February 2023, analysts anticipate the US to add 200,000 jobs, resulting in an unemployment rate of 3.6%. In Canada, employment is expected to increase by 20,000, with an unemployment rate of 5.2%.