The Federal Reserve's first interest rate increase in over three years, announced on Thursday Beijing time, has shifted market focus toward upcoming policy decisions from other major central banks. The Fed's new chair, Kevin Warsh, delivered a hawkish signal following the meeting, indicating a potential additional rate hike in 2026. This stance has driven a sharp rise in both the US dollar and Treasury yields.

According to the CME Group's FedWatch tool, interest rate futures markets are currently pricing in a high probability of 90% for another 25-basis-point rate increase by the Fed before the end of this year. This market expectation follows the central bank's decisive move to begin tightening monetary policy.

Looking ahead, the Bank of England's rate decision is scheduled for 19:00 Beijing time on Thursday, though expectations suggest it will likely hold rates steady. However, the more closely watched event is the Bank of Japan's policy meeting on Friday, where there is widespread anticipation of a rate increase that would push interest rates to their highest level in nearly 31 years.

Market participants expect the BoJ to signal a continued path of raising financing costs, aligning with other major central banks in their efforts to counter sustained inflationary pressures stemming from rising oil prices. Additionally, traders will carefully monitor any commentary from Bank of Japan Governor Kazuo Ueda for clues regarding the timing and pace of future rate hikes.