Highlights
Germany's Ifo survey is expected to show the business climate index improved for a fourth straight month in January, to 90.1 from December's 88.6, which was more than a point above expectations. The current conditions index is seen edging up to 94.9 from 94.4 while the business expectations index is expected to rise to 85.0 from 83.2.
The Bank of Canada is expected to slow the pace of its tightening, raising its short-term interest rate target by 25 basis points to 4.50% on Wednesday after conducting more aggressive hikes in 2022, then take a pause for the rest of the year. The annual consumer inflation rate continued easing to 6.3 percent in December from 6.8 percent in November and a recent peak of 8.1 percent in June 2022 amid softer commodities prices, but it is still well above the bank's 2 percent target. Last month the bank raised its policy interest rate by 50 basis points to 4.25 percent in a seventh consecutive hike in the tightening phase that began in March 2022 while signaling that the phase of aggressive tightening is over.
The bank will also release its quarterly Monetary Policy Report. In its last report issued in October, the bank projected that economic growth in Canada would essentially stall later in 2022 and through the first half of 2023.
Hit by slower global demand and rising borrowing costs, South Korea's economy is forecast to post its first contraction in two and half years, down 0.2% on quarter in October-December after growing 0.3% in July-September. From a year earlier, GDP growth is seen slowing to 1.6% in the final quarter of 2022 from 3.1% in the third quarter. At the early stage of the pandemic, The Korean GDP slumped 1.3% on quarter in the first three months of 2020 and 3.0% in the second quarter.
The Bank of Japan will release the summary of opinions expressed by its nine board members at their latest policy meeting on Jan. 17-18, at which the board decided unanimously to maintain its basic monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and large asset purchases, against the backdrop of a possible recession in other major economies and an expected waning in inflation from the current spike boosted by high import costs. Last month, the board decided to allow the yield on the 10-year Japanese government bonds to rise to 0.5% from the previous cap of 0.25% amid upward pressures arising from aggressive tightening by other major central banks, hoping to revive some of the paralyzed market functions under its yield curve control regime.
The Bank of Canada is expected to slow the pace of its tightening, raising its short-term interest rate target by 25 basis points to 4.50% on Wednesday after conducting more aggressive hikes in 2022, then take a pause for the rest of the year. The annual consumer inflation rate continued easing to 6.3 percent in December from 6.8 percent in November and a recent peak of 8.1 percent in June 2022 amid softer commodities prices, but it is still well above the bank's 2 percent target. Last month the bank raised its policy interest rate by 50 basis points to 4.25 percent in a seventh consecutive hike in the tightening phase that began in March 2022 while signaling that the phase of aggressive tightening is over.
The bank will also release its quarterly Monetary Policy Report. In its last report issued in October, the bank projected that economic growth in Canada would essentially stall later in 2022 and through the first half of 2023.
Hit by slower global demand and rising borrowing costs, South Korea's economy is forecast to post its first contraction in two and half years, down 0.2% on quarter in October-December after growing 0.3% in July-September. From a year earlier, GDP growth is seen slowing to 1.6% in the final quarter of 2022 from 3.1% in the third quarter. At the early stage of the pandemic, The Korean GDP slumped 1.3% on quarter in the first three months of 2020 and 3.0% in the second quarter.
The Bank of Japan will release the summary of opinions expressed by its nine board members at their latest policy meeting on Jan. 17-18, at which the board decided unanimously to maintain its basic monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and large asset purchases, against the backdrop of a possible recession in other major economies and an expected waning in inflation from the current spike boosted by high import costs. Last month, the board decided to allow the yield on the 10-year Japanese government bonds to rise to 0.5% from the previous cap of 0.25% amid upward pressures arising from aggressive tightening by other major central banks, hoping to revive some of the paralyzed market functions under its yield curve control regime.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
