In just one week, the US Federal Reserve, the Bank of England and the Bank of Japan all chose to hold interest rates steady, yet none of the decisions were unanimous, and of course, the Fed's new Chair is now steering away from forward guidance altogether. With investors left to navigate rates without the usual signposts, what should they make of this week's decisions, and what comes next?

In this episode of The View Beyond, Bernadette Anderko sits down with David Kohl, Chief Economist at Julius Baer, to unpack the week's central bank decisions. They discuss why the Fed held rates despite markets anticipating a hike, the bond market volatility and dollar weakness that followed Kevin Warsh's press conference, and the outlook for Fed policy into year end. The conversation also covers the Bank of England's split vote and UK rate expectations amid a new political backdrop, as well as examining the Bank of Japan's decision to hold rates while signalling a more hawkish shift alongside yen intervention. Finally, David also offers his insights into why he believes that the ECB will not hike rates at their September meeting.

(00:00) - Introduction
(01:04) - The Fed's decision not to hike rates
(03:00) - Bond market reaction and Kevin Warsh's communication style
(05:34) - Outlook for Fed rate expectations
(07:46) - The Bank of England's split decision
(09:18) - UK rate expectations amid political change
(11:21) - The Bank of Japan holds rates and hints at hikes
(15:15) - Expectations for the ECB
(17:24) - Closing remarks

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The View Beyond: Reading rates without a map as the Fed, BoE and BoJ hold

Moving Markets

The View Beyond: Reading rates without a map as the Fed, BoE and BoJ hold