BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
BOJ Rate Hike Expected to Boost Yen, Impact USD/JPY and Nikkei 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
RBI Holds Interest Rates at 5.25%, Cuts India Growth Forecast Amid Rising Global Risks 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
The Bank of Canada maintained its benchmark rate at 2.25%, in line with expectations, stating that its outlook for GDP and inflation has remained basically unchanged since October, albeit uncertainty continues to weigh on it. Trade tensions and tariffs are likely to hamper economic activity until the end of 2025, with growth forecast at 1.1% in 2026 and 1.5% in 2027.
The BoC expects inflation to ease further as temporary base effects from last year’s GST/HST holiday fade, allowing inflation to stay near the 2% target as excess supply offsets tariff-related cost pressures.
Policymakers said elevated uncertainty makes it difficult to predict the timing or direction of the next rate move, reinforcing a data-dependent approach. While the decision was widely expected, the Bank highlighted that geopolitical developments could impact the outlook in 2026.
