Central banks face critical rate-cut decisions in a pivotal week

This week will be crucial for central banks as they make their final rate decisions of the year, putting market expectations for rate cuts in early 2024 to the test. The U.S. Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, and Norway's Norges Bank are all set to meet. While most central banks are expected to hold interest rates steady, Norway's central bank warned of a likely rate hike in December. Investors will be looking for clues on when rate cuts could start next year as inflation continues to fall. The market is expecting rate cuts, but Federal Reserve Chairman Jerome Powell has pushed back on these expectations, emphasizing the need for caution and balance in monetary policy. The ECB is also being closely watched for any signs of swift rate cuts in 2024.