- A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist.Three monetary policy decisions in Asia and a finely balanced call from the Bank of England will give Asian markets their steer, as investors digest the Federal Reserve's policy decision, revised forecasts and guidance on Wednesday.
The surprise fall in UK inflation last month puts the BoE decision on a knife edge - Goldman Sachs, Deutsche and Nomura all changed their BoE calls - and the pullback in rate hike expectations contributed to the fall in global bond yields earlier on Wednesday.Punchy upward revisions to U.S. policymakers' median rate forecasts for the next couple of years tipped markets the other way - the dollar rebounded sharply, U.S.
For Asian markets, one of the most significant consequences of the Fed's revisions is the dollar's rise, most notably against the yen. The dollar hit an 11-month high above 148 yen, which Japanese policymakers will be paying close attention to.