U.S. President Donald Trump will again be centre of attention in the coming week with any policy statements, having helped put the Federal Reserve, Bank of England and other central banks in wait-and-see mode. Ciara Lee reports.
He appears to be getting used to being centre of attention, and this week will be no different for U.S. President Donald Trump. His statements so far putting the Fed, Bank of England and other central banks in wait-and-see mode. A rise in protectionist trade policies is now deemed to be the biggest risk facing the global economy, according to a Reuters poll. SOUNDBITE (English) JEREMY STRETCH, HEAD OF FX STRATEGY, CIBC, SAYING: "Trade frictions and barriers are generally considered in macro terms detrimental, any rowing back on trade deals whether they are bilateral or otherwise could be seen as negative for the trade picture." Last month the Fed added 25 basis points to borrowing costs, only its second hike since the Great Recession and a year since the first one. At the time, policymakers signalled as many as three increases in 2017. But no hike is expected on Wednesday with rates remaining unchanged until the second quarter. In Europe, flash data is expected to show euro zone inflation rising to 1.5 percent this month, still a way from the ECB's target. Although Germany's is expected to rise to 2 percent. A slowdown in growth in Britain's service industry and among its manufacturers during January is also expected. It's been experiencing robust growth as consumers brush off warnings over Brexit. But economists have warned booming inflation and uncertainty around the terms of Britain's divorce from the EU could curtail growth rates this year. The BoE will also publish its quarterly Inflation Report at its policy meeting.. And the Bank of Japan and Central Bank of Russia all have decisions - none are expected to move. China continues celebrating its Lunar New Year so there will be little news from the world's second largest economy.