US interest rates will be in the cross-hairs on Wednesday, with the conclusion of the latest two-day Federal Reserve policy meeting, expected to sanction another hike in borrowing costs.
The FOMC meeting is forecast to increase US interest rates by another 25 basis points, moving it up to 1.75%–2.00%.
In a preview of the meeting, economists at RBC Capital commented: “The market has been pricing >80% probability of this outcome for some time, so it would not come as a surprise.”
They added: “We don’t anticipate dramatic changes in the characterization of economic growth or inflation in the press statement, as these have evolved largely as expected.”
But they concluded: “At some point, the Fed will have to more forcefully acknowledge the run-up in market-based measures of inflation.”
UK CPI also eyed
Talking of inflation, the latest UK consumer price index will be published on Tuesday, although the numbers are unlikely to trigger any thoughts of a possible UK interest rate hike at next week’s Bank of England Monetary Policy Committee meeting.
Rising fuel prices have made headlines of late in the UK, as pump prices jumped in May reflecting higher crude prices, so CPI inflation for last month is forecast to increase to 2.6% year-on-year, up from 2.4% annualised growth in April.
WPP AGM set to be feisty
On the corporate front, WPP PLC’s (LON:WPP) annual general meeting on Wednesday could be a feisty affair, with Sky News reporting that more than a quarter of investors have cast votes against a pay report, angered by benefits for the advertising giant’s former chief executive Martin Sorrell.
The AGM has received much media attention because of the high-profile departure of Sorrell, with Sky News saying that up to 20% also plan to oppose the re-election of WPP’s chairman, Roberto Quarta,
Sorrell quit WPP in April after the board opened an investigation into an allegation of personal misconduct. The company has not given any details and Sorrell has denied any wrongdoing.
Significant events expected on Wednesday June 13:
US FOMC interest rate decision
Finals: Biffa PLC (LON:BIFF), Charles Stanley Group PLC (LON:CAY), Castings PLC (LON:CGS), Eckoh PLC (LON:ECK), Evgen Pharma PLC (LON:EVG), Enteq Upstream plc (LON:NTQ), Mulberry Group PLC (LON:MUL), Norcros PLC (LON:NXR)
Interims: Autins Group PLC (LON:AUTG), Redhall Group PLC (LON:RHL)
Economic data: UK CPI, RPI, PPI, HPI inflation; US forward PPI