By Koh Gui Qing and Alun John
NEW YORK/LONDON (Reuters) -Global shares edged higher and the yen slid past 150 to the dollar on Tuesday after the Bank of Japan met market expectations by ending eight years of negative interest rates, likely the highlight of a busy week for central banks.
Investors will now turn their focus to the U.S. Federal Reserve’s monetary policy meeting that ends on Wednesday, when the central bank is expected to provide further clues about the pace at which it will likely lower interest rates this year.
Financial markets are now considering the chance that the Fed might reduce the number of projected rate cuts this year to two from three on the back of last week’s stronger-than-expected inflation data.
“We don’t think the Fed will fundamentally change its outlook for inflation based on two hotter than desired prints to start the year,” said Christopher Hodge, chief economist at Natxis CIB Americas.
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