Since 2008, these institutions have flooded the financial system with unthinkable amounts of cash at very low interest rates. The Federal Open Market Committee (FOMC), the panel that sets the benchmark interest rates in the US, will meet on Sept 20 to discuss its monetary policy. The Fed last raised its benchmark interest rate in December last year after keeping it at near zero since 2008. Investors will also be looking at Japan next week, as the odds are rising for the central bank there to go further negative on interest rates. The Bank of Japan (BoJ) shocked the global market in January by cutting interest rates below zero for the first time.

Source: The Star September 17, 2016 01:52 UTC