Central banks meet amid geopolitical tensions: markets await moves on interest rates and inflation.

An intense week is expected for the world’s major central banks. Hence, the European Central Bank, the Federal Reserve, and the Bank of England will meet between Wednesday and Thursday in order to discuss their next moves in light of current economic challenges.

The conflict in the Middle East has put previously established objectives into question.

The Swiss National Bank and the Bank of Japan also have policy meetings scheduled.

According to analysts, despite the tragic situation in the Middle East, the main actors of monetary policy, particularly the European Central Bank, are not expected to change interest rates, which are currently set at 2%.

Nevertheless, the United States seems to be facing the most complex situation, with the Federal Reserve dealing with a more uncertain economic environment. The administration led by President Donald Trump is therefore starting from a more fragile position.

To be more precise,the latest Non-Farm Payrolls (NFP) data are not particularly encouraging: the unemployment rate rose to 4.4% in February, with a total loss of 92,000 jobs.

This rather complex scenario puts pressure on officials at the Federal Reserve. Indeed, an increase or decrease in employment can influence expectations regarding interest rates, which in turn affect investment flows in equities, currencies and commodities.

In any case, even on this occasion, Chairman Jerome Powell is not expected to introduce any changes to interest rates. This may be one of the last meetings under his leadership at the Fed; afterward, the institution will be led by Kevin Warsh, who will be nominated next May and whose approach to monetary policy remains uncertain.