RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
India Services Sector Rebounds in January as New Business Gains Momentum: HSBC PMI Shows Growth 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
The Bank of England is widely expected to cut interest rates on Thursday as signs mount that UK inflation is easing and economic growth is weakening. Financial markets anticipate a 25-basis-point reduction, bringing the benchmark Bank Rate down to 3.75% from 4%. If confirmed, this would mark the fourth rate cut of 2025 and take borrowing costs to their lowest level in nearly three years, offering some relief to households and businesses.
A rate cut would also provide political breathing room for Chancellor Rachel Reeves and Prime Minister Keir Starmer, who face growing pressure to revive economic growth. However, despite the expected move, investors and economists believe the scope for further easing in 2026 remains limited due to persistent inflation pressures in the UK economy.
Recent data showed consumer price inflation falling sharply to 3.2%, a bigger-than-expected slowdown that followed signs of a cooling labour market and the highest unemployment rate since 2021. Britain’s economy also contracted by 0.1% in the three months to October, reflecting weak business confidence ahead of Reeves’ November budget. These developments have strengthened the case for a near-term interest rate cut.
Even so, UK inflation remains the highest among G7 economies, partly due to higher employer taxes introduced last year. Services inflation continues to prove stubborn, and business surveys suggest underlying price pressures have not fully dissipated. Measures in the government’s budget, such as removing green levies from energy bills and freezing rail fares, are expected to have only a temporary impact on inflation.
The Bank of England’s Monetary Policy Committee remains deeply divided, with recent votes narrowly split. Analysts expect a close decision again, potentially hinging on Governor Andrew Bailey’s vote. While markets are pricing in one additional rate cut in 2026, policymakers are likely to stress a cautious, gradual approach rather than signal a full easing cycle.
With inflation still above target and global central banks nearing the end of their own rate-cutting phases, the BoE is expected to balance near-term economic weakness against longer-term price stability risks.
