Hungary Pauses Rate Cut as Fresh Inflation Figures Cloud Outlook
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The Bank of Israel left its policy rate at 4% , pausing after two prior easing moves amid elevated geopolitical uncertainty tied to a potential US strike on Iran . The pause mirrors a wider pattern among small open economies—where central banks delay easing either because of persistent domestic inflation or heightened external risks—illustrated by a recent, separate hold by Hungary’s central bank for inflationary reasons. A split market view— 9 of 16 economists expected a cut—highlights how conflict and data risks are jointly re-pricing the path of monetary easing.
Bank of Russia cuts key rate to 15.5% as growth concerns outweigh inflationary warning
The Bank of Russia lowered its policy rate by 50 basis points to 15.5%, continuing a multi-step easing cycle aimed at easing financing pressures on firms even as consumer prices have accelerated. The move prioritizes supporting activity over immediate inflation containment and raises risks for exchange-rate and inflation dynamics unless growth firms up.
Fed Governor Lisa Cook Signals Patience on Rate Cuts, Cites Labor and Inflation Dynamics
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Bank of America and Peers Raise China Inflation Outlook, Delay Rate-Cut Expectations
Major U.S. banks raised forecasts for China inflation and pushed expected timing for the next rate reduction further out, citing an oil-price surge tied to the Iran conflict and a mix of prompt volatility plus slower-to-unwind delivered-cost pressures. Markets must reprice Chinese yield trajectories, FX flows and cross-border risk exposures as front-month energy spikes coexist with structural shipping, insurance and state‑buying effects.
UK: Bank of England Pauses Rate Moves as Jobs Data Turns Softer
The Bank of England has opted to hold policy rates steady as recent labour-market indicators show cooling momentum, reducing the immediate upside risk to inflation from tight capacity. Policymakers framed the move as a conditional pause — preserving the option to tighten again if inflation re-accelerates or to ease only with clearer evidence of a sustained slowdown.
UK inflation eases to 3.0%, lifting odds of March BoE rate cut
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Bank Indonesia Ends Easing Drive, Signals Pause and Upside Rate Risk
Bank Indonesia abandoned forecasts for further rate reductions, shifting to a sustained pause with a clear bias toward guarding the rupiah and prices amid Middle East turmoil. Markets now price removed cuts and higher probability of tighter policy, forcing borrowers and investors to reassess funding and FX exposure.
Bank of England likely to keep Bank Rate steady as inflation proves sticky
The Bank of England’s Monetary Policy Committee is widely expected to leave the Bank Rate unchanged at 3.75% in its first meeting of the year as mixed signals — persistent inflation but signs of a cooling labour market — warrant a cautious, data-dependent pause. Markets have already trimmed the odds of near-term moves and will focus on the committee’s language and the accompanying quarterly projections for guidance on the timing of any easing.