Markets brace for multiple interest rate decisions

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waterman

Written by Dan Waterman
March 17th 2026
21 central banks are setting policy this week, covering two-thirds of the global economy..

We have a 'super' interest rate week ahead of us and the Bank of England will be the main attraction.

The result, the voting and the comments at Thursday's BoE interest rate decision are going to be crucial. An interest rate cut this month was guaranteed only 2-weeks ago and now it looks to be completely off the cards, as is any interest rate cut this year as things stand.

We are close to finding out whether MPC members agree with this sentiment or not and either way, volatility both near and long term will ensue, as traders quickly move to repricing GBP's future value relative to other currencies. 

Personally, we believe the market has this right and £-€ should improve with £-$ unchanged. 

However, we also have the US & EU interest rate decisions and minutes this week. Both will be mentioning what the 'new normal' could look like for their economies and the world this year because of the Iran-US war. Both are fully priced in to do nothing with rates, but it's the narrative after traders are wanting to hear. 

President Trump has been busy with his comments again this week; he has requested a delayed meeting with Chinese President Xi, is not happy with Nato members in helping his war with Iran, maintains he wants to send warships to guard the Strait of Hormuz, the US has hit 6,00 targets in Iran and Iran has been pretty much obliterated.

Still, oil remains over $100, Iran continues to target and hit important gas fields and supplies and have today rejected peace talks with the US. 

We are therefore undoubtedly headed quickly towards extreme currency swings and a market completely impossible to predict with recessions and stagflation on their way if things aren't sorted soon enough.