Hot Inflation Data Raises Stakes for Tomorrow’s Fed Meeting

Markets are in the thick of a busy week for central banks with decisions from the US Federal Reserve and Bank of England still to come after the Bank of Japan ended its experiment with negative interest rates. The Japanese central bank hiked rates for the first time in 18 years, bringing its key rate to 0.1 per cent. It also ended its policy of yield curve control. The widely anticipated decision was made following substantial salary increases obtained by employees at several of Japan’s leading firms, marking the largest pay rise since 1991.…