It’s going to be a busy one in central bank land this week with the Fed, BOJ, BOE, and SNB all on the agenda. The policy decisions themselves should be rather straightforward. But as always, it’s all about watching for the little details and nuances in the communication.

The BOJ will kick things off tomorrow with no rate change expected this time around. We’re still sorting out the conclusions from the spring wage negotiations and policymakers will also be looking to that to try and build the narrative for their next rate hike. May might still be too soon for the BOJ but they might be looking to tee up a move in June or July next. So, watch out for their commentary on wages and the inflation outlook in the latest one this week.

After that, we’ll have the Fed decision where Powell & co. will leave interest rates unchanged as well. No rate cut is expected in May either, at least for now. But amid softening US economic data, markets have moved to price in a potential move in June. The odds of that are at ~80% currently. Will the Fed vindicate the market pricing? Or will they just stick to the status quo?

And then on Thursday, we’ll have the SNB lined up first with the Swiss central bank set to cut its policy rate one more time to 0.25%. Swiss inflation is well under control but the main worry for the SNB now is the franc currency. But I guess with Germany’s debt brake reform, they can take in some comfort in seeing that underpin EUR/CHF.

A return to ZIRP or NIRP is not on the agenda for now with traders pricing in this week’s rate cut as the final step for the SNB in this cycle.

Lastly, we’ll have the BOE and much like the BOJ and Fed there is no rate change expected. The bank rate vote will once again be the key spot to watch but odds are, things could be headed for a rate cut in May next. The odds priced in are at ~64% currently.

At this stage, inflation continues to pose a problem for the BOE as it remains very sticky to start the new year. That will put the BOE on alert with next week’s CPI report going to be crucial in determining their plans for May/June. As things stand, traders are only pricing in two rate cuts for the BOE left for this year.