BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
Jerome Powell Warns Against Politicizing the Federal Reserve, Defends Democratic Institutions 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
Indonesia Passes New Central Bank Law, Raising Investor Concerns Over Policy Independence 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
Kevin Warsh Faces Early Fed Test as Inflation Risks Challenge Rate-Cut Expectations 
Indian Government Bonds Seen Opening Steady Ahead of RBI Policy Decision 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
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.
