Oliver Mangan: Central Banks are not for turning on rate hikes

Given the bleak UK economic outlook, though, the Bank of England seems the most likely of the three central banks not to extend its rate hiking cycle into the second quarter

Federal Reserve Chairman Jerome Powell. Markets are also pricing in that US rates will be cut to 4.5% by the end of the year.

The focus of markets is very much on central banks this week, as the US Federal Reserve, Bank of England and European Central Bank all hold their first monetary policy meetings of 2023. 

All three are set to deliver further increases in interest rates given that inflation remains at very elevated levels. These will come on top of the substantial hikes implemented in 2022, ranging in total from 250-425bps.