Central Bank Heads to Discuss Global Economic Trends in Sintra

This week, the heads of the central banks of the United States, the United Kingdom, the Eurozone, Japan, and South Korea are set to convene in Sintra, Portugal, for the annual European Central Bank Forum. The event, which runs from June 30 to July 2, is a significant gathering that attracts central bank officials, economists, and scholars to discuss global economic trends and monetary policy directions.

The forum, known for its high-profile discussions, will feature a panel with the heads of the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, and the Bank of Korea. The panel is scheduled for Tuesday at 21:30 Beijing time and will focus on the economic impacts of recent political developments, including trade disruptions related to U.S. tariffs and oil price volatility due to geopolitical tensions in the Middle East.

This year's forum marks the first time since 2024 that the heads of the European Central Bank and the Federal Reserve will publicly discuss monetary policy together. Their previous meeting in 2024 highlighted the challenges of setting interest rates under political pressure, which seemed to foreshadow the economic turbulence that followed.

As the global economy faces the dual risks of rising inflation and slowing economic growth due to U.S. policies, the central bank heads will need to balance these challenges. The European Central Bank has recently implemented a rate cut but is not planning further action. The Bank of Japan is expected to maintain its benchmark interest rate at its July 31 meeting, while the Bank of Korea is also proceeding with caution.

In a pre-forum podcast interview, the European Central Bank's chief economist emphasized that the panel discussion with the five central bank heads would be a highlight of the event. He noted that the forum's theme of "adapting to change" might seem conservative, given the complex and severe real-world changes that central banks are facing.

He predicted that the discussion would be intense, as central bank heads need to step back from short-term considerations and examine the underlying fundamentals. The meeting between the heads of the Federal Reserve and the European Central Bank will be particularly noteworthy, as U.S. President Trump has frequently criticized the Federal Reserve's pace of action, comparing it to the European Central Bank's series of rate cuts over the past year.