BOJ hike, Fed meeting, Nvidia conference, Bitcoin - what's moving markets

investing.com:

Investing.com — Wall Street futures point to a cautious trading day ahead of the start of the latest Federal Reserve policy-setting meeting, especially after the Bank of Japan lifted its interest rates for the first time in almost two decades earlier in the session. Nvidia continues its annual developer conference, while Bitcoin suffers its largest one-day drop in two weeks..

This central bank-dominated week has started with a bang, as the Bank of Japan hiked interest rates for the first time in 17 years earlier Tuesday, marking an end to nearly a decade of ultra-loose monetary policy.

The BOJ raised short-term interest rates by ten basis points to 0%, and said while it will continue to purchase Japanese government bonds at a «steady» pace, it will end the purchase of riskier exchange-traded funds and real estate investment trusts.

The news from the Reserve Bank of Australia was less dramatic, as this central bank decided to leave interest rates unchanged, as widely expected, though the RBA further watered down its tightening bias.

Attention now turns to the start of the Federal Reserve's two-day policy meeting, later in the session, with its decision set to be announced on Wednesday.

The U.S. central bank is widely expected to stand pat, but the focus will be on its economic projections and how many rate cuts it estimates for the year.

Earlier this month, Chair Jerome Powell said the Fed was «not far» from gaining the confidence it needs in falling inflation to start easing rates.

The Bank of England and the Swiss National Bank also meet this week, on Thursday, and both are also expected to keep interest rates steady.

The BOE is likely to await greater clarity on wage growth, which remains stronger than in the U.S. or