Singapore Maintains Steady Monetary Outlook as Positive Output Gap Persists into 2025 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
RBA Reassesses Pricing Behaviors and Policy Impact Amid Inflation Pressures 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Fed Officials Split as Powell Weighs December Interest Rate Cut 
Upcoming BoE Announcement
The BoE will also announce the Monetary Policy Report and interest rate decision on February 6, and most economists predict that they will cut the base rate by 25 basis points to 4.75%. It is important because it can positively influence economic activity if it goes unimpressive.
Expectations of Growth and Inflation
The BoE is likely to trim down its growth expectations for the UK and also see inflation rates rise in this report. The inflation rate is likely to be at 2.8% by the third quarter of 2025, which is critical since the BoE wants a target of 2%. There are opinions differing between MPC members regarding the rate-easing process, with some members wanting faster cuts and others being more cautious.
Careful Strategy Ahead
Market expectations are that the BoE is likely to maintain a cautious policy given recent shocks, such as US trade policies. For now, many expect three quarter-point cuts throughout 2025 and see a good chance of one of those on February 6. In addition, the BoE may assume future economic growth at 1%-1.5%, much like its projections for last year.
