Financial Times FT.com

Investors banking on the Fed to pause

By Jennifer Hughes in New York

Published: August 6 2006 19:25 | Last updated: August 6 2006 19:25

Central banks and interest rates seem set to continue dominating market moves this week, with decisions due from the Federal Reserve and the Bank of Japan and an explanation of last week’s surprise rate rise from the Bank of England.

Overshadowing the early part of the week will be the Fed, which meets on Tuesday. Following an unexpectedly soft employment report on Friday, most investors expect the central bank to leave rates unchanged for the first time in more than two years of steady, quarter-point increases.

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