Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Tech Stocks Lift S&P 500 as Fed Rate-Cut Expectations Rise 
BOJ Governor Ueda Meets Key Ministers as Markets Eye Policy Shifts Under New Leadership 
RBA Minutes Signal Growing Caution on Future Rate Cuts Amid Persistent Inflation 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
BOJ’s Noguchi Calls for Cautious, Gradual Interest Rate Hikes to Sustain Inflation Goals 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
The Bank of England (BoE) is expected to keep interest rates steady at 4.25% on Thursday, as policymakers assess weakening inflation and economic signals alongside rising energy costs from the Israel-Iran conflict. British inflation eased slightly in May after a sharp rise in April, with services price growth — a key BoE concern — slowing notably. Wage growth also decelerated, and labor market data showed signs of softening.
April’s economic output contracted the most since 2023, partly due to the end of a home sales tax break and U.S. President Donald Trump’s new trade tariffs. Despite these factors, BoE Governor Andrew Bailey and his Monetary Policy Committee (MPC) remain cautious about rate cuts. Oil prices have surged 8.5% within a week due to Middle East tensions, adding inflationary pressure.
A Reuters poll shows a likely 7-2 MPC vote in favor of holding rates. Most economists expect the next 25-basis-point rate cut in August, with a further drop to 3.75% by year-end. In May, the MPC narrowly voted to cut rates, revealing divisions over the pace of monetary easing.
The BoE has matched the U.S. Federal Reserve in rate cuts since mid-2024, although it trails the European Central Bank, which recently reduced rates after eurozone inflation hit its 2% target. UK interest rates are forecasted to fall more quickly than in the eurozone but similarly to the U.S., as both central banks weigh inflation risks from tariffs and oil prices.
Analysts warn the BoE may struggle to balance growth concerns with inflation, especially amid geopolitical uncertainty. However, a recent UK-U.S. tariff deal may help cushion the economic impact. The BoE continues to signal a gradual, data-driven approach.
