BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
New Zealand Budget 2026 Focuses on Fiscal Discipline and Infrastructure Investment 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
BOJ Rate Hike Expectations Grow as Board Member Signals Hawkish Stance 
Gold Prices Hold Steady as Investors Monitor U.S.-Iran Tensions and Trump-Xi Summit 
Havana Protests Erupt as Cuba Faces Severe Blackouts and Fuel Crisis 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Dollar Surges as Inflation Data Fuels Fed Rate Hike Expectations 
The People’s Bank of China (PBoC) is expected to cut benchmark lending rates twice by 25bp each in Q1 and Q2, possibly as early as around February 1, according to the latest report from Barclays Research.
The dovish tone and proactive stance exhibited by the PBoC in January underscore significant downward pressure on growth from both weak domestic demand and a rapid deterioration in the external environment, as evidenced by plunging global PMIs, emerging deflation risks and expectations for further declines in Jan-Feb activity data.
In this respect, while RRR cuts have lowered banks’ funding costs and targeted easing measures have supported credit growth, average loan rates have remained elevated despite falling interbank rates and bond yields.
"We think credit growth, effective lending rates and credit spreads are useful indicators to evaluate the PBoC’s success. With credit risk premiums likely staying elevated, we believe lowering the risk-free rate is an unavoidable option," the report added.
