Daily Economic Outlook: 28th October, 2015

Today's FOMC policy announcement is not expected to produce a change in the policy stance. However, in the absence of an accompanying press conference or updates to the Committee members' forecasts, attention will focus squarely on the post-meeting statement for guidance on the likelihood of a December hike in the policy rate. 

In particular, markets will be interested in the FOMC's view on two key issues which have dominated the public discourse since their last meeting in September, namely the weaker-than-expected September employment report and signs of an easing in global growth concerns, notes Lloyds bank. Recent comments by Fed Governors Brainard and Tarullo have ignited interest in the view that the tightening labour market might not be fuelling near-term underlying inflationary pressure. But this issue is unlikely to be touched upon. Today will also see policy announcements by the Riksbank and RNBZ. Both are also expected to maintain their current policy stance.  

It is a light day for data releases. However, given the moderately upbeat tone to last Monday's IFO survey of business sentiment, it will be interesting to see if this is replicated in this morning's French and Italian sentiment indices.