The global rate cuts to watch this week

A raft of global central banks — including the US Federal Reserve and the Bank of Japan — will this week set interest rates.

Policymakers in Mexico, Norway, the Philippines, Russia, Sweden, Taiwan, and the UK will also determine the path of their domestic borrowing costs, though analysts will focus in particular on decisions in Washington and Tokyo.

In the former, the Fed is expected to reduce rates by 0.25 percentage points, but experts are changing their projections for the central bank’s future policy, betting on a slower pace of rate cuts.

In the latter, economists are divided over whether officials will raise interest rates in the face of faster-than-expected inflation and upward revisions to economic growth.