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According to analysts at Westpac, the US Fed is most likely to keep rates unchanged but reiterate its recent messages around the growth and inflation outlook and the prospects of more rate hikes in a gradual cycle.

Key Quotes

“That should not shift market expectations too much, although it will focus attention on a hike in September and potentially consolidate expectations around December.”

“From a market perspective, we think the BoJ outcome will be more interesting, with its focus on the 10yr bond yield target and asset purchases. Should they let the bond rate drift higher, it would likely underpin a bearish bias in global bonds.”