Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
BOJ Holds Interest Rates at 0.75% as Policymakers Signal Growing Inflation Concerns 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Kevin Warsh Advances Toward Fed Chair Role Amid Political Tensions 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
Eurozone Recession Risks Rise as Middle East Conflict Threatens Growth, ECB Official Warns 
RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
The Bank of Canada maintained its benchmark rate at 2.25%, in line with expectations, stating that its outlook for GDP and inflation has remained basically unchanged since October, albeit uncertainty continues to weigh on it. Trade tensions and tariffs are likely to hamper economic activity until the end of 2025, with growth forecast at 1.1% in 2026 and 1.5% in 2027.
The BoC expects inflation to ease further as temporary base effects from last year’s GST/HST holiday fade, allowing inflation to stay near the 2% target as excess supply offsets tariff-related cost pressures.
Policymakers said elevated uncertainty makes it difficult to predict the timing or direction of the next rate move, reinforcing a data-dependent approach. While the decision was widely expected, the Bank highlighted that geopolitical developments could impact the outlook in 2026.
