Federal Reserve Probes Big Banks Over Private Credit Exposure Amid Growing Systemic Risk Concerns 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
Singapore Tightens Monetary Policy Amid Middle East War Inflation Risks 
RBI Holds Interest Rates Steady Amid Middle East Tensions and Global Uncertainty 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
Bank of Korea Nominee Shin Hyun-song Signals Possible Rate Hike Amid Middle East Inflation Fears 
Bank of Korea Governor Nominee Warns of Action if Korean Won Weakens Further 
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
RBNZ Holds Rates at 2.25% as Middle East Conflict Fuels Inflation Concerns 
ECB Warns of Rising Inflation Risks Amid Iran War Energy Shock 
BOJ Rate Decision in Focus as Yen, Inflation, and Nikkei Hang in Balance 
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
The Bank of Canada held its policy rate unchanged at 2.25%, where it has stood since October, citing no change in its growth forecast despite global shocks. While higher oil prices are shifting the composition of growth, their overall impact remains limited.
The Bank forecasts GDP growth of 1.2% in 2026 and 1.6% in 2027, with inflation expected return to target as oil prices fall. Its neutral rate forecast stands at 2.25%-3.25%, while potential GDP was revised slightly higher, supported by past data revisions and expected gains from AI adoption.
Inflation is projected to peak around 3% in April before falling back to the 2% target early next year. Although fuel and food costs have raised near-term inflation expectations, the Bank sees no evidence of broader price spillovers, with long-term expectations still well anchored.
The Governing Council signaled that present policy settings are appropriate as oil prices decline and tariffs stay constant. However, it flagged dangers on both sides—further US trade restrictions could necessitate rate cuts, whilst persistently high oil prices could feed broader inflation and necessitate future rate hikes.
