Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Open-Source AI Models Gain Ground as Enterprises Seek Lower-Cost Alternatives, Citi Says 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Europe Heatwave Creates Growth Opportunity for Carrier, Trane, and Johnson Controls, Citi Says 
On February 5, 2026, the Governing Council of the European Central Bank kept its three main interest rates unchanged: the deposit facility rate at 2.00%, the major refinancing operations rate at 2.15%, and the marginal lending facility rate at 2.40%. This is the fifth straight hold since the last cut in mid-2025, which shows confidence that middle-term inflation will level at the 2% target. Though obstacles from international trade tensions, geopolitical hazards, and a stronger euro exist, the ECB emphasized supporting elements like low unemployment, healthy corporate and household balance sheets, higher defense and infrastructure spending, and the effects of past rate cuts strengthening euro area resilience.
With the ECB stressing a data-dependent, meeting-by-meeting approach instead of any pre-committed path for future rates, the economic outlook remains cautiously optimistic. Without reinvestments, asset purchase program (APP) and pandemic emergency purchase program (PEPP) holdings will keep running down predictably. Including possible use of the Transmission Protection Instrument (TPI) should market segmentation occur, policymakers confirmed their readiness to modify tools as required to guarantee price stability and easy monetary policy transmission.
In her press conference, President Christine Lagarde highlighted the ECB's flexible approach, observing that policy is in a "good place" while still watching for fresh data on inflation trends, economic activity, and foreign uncertainties. With EUR/USD remaining stable above 1.18, markets have read the ruling as encouraging of constant rates across most of 2026. The ECB's balanced attitude indicates patience, therefore giving ongoing convergence to the inflation goal top importance over hasty loosening or tightening.
