Rising U.S. Treasury Yields Signal Market Challenges Ahead 
China's Bold Moves to Stabilize the Yuan Amid Economic Uncertainty 
Bank of England Expected to Cut Interest Rates Amid Economic Challenges 
Canadian and U.S. Banks Exit Climate Alliance Amid Policy Shifts 
Fed Signals Slower Rate Cuts Amid Inflation Concerns 
BIS Warns Fed and ECB: Rethink Interest Rates to Control Inflation 
Yen Strengthens as Japan Maintains Tightening While ECB Moves to Cut Rates 
Tokyo Inflation Hits Near Two-Year High, BOJ Rate Hike Impact in Focus 
Hong Kong Keeps Interest Rates Unchanged, Tracking Fed's Decision 
Singapore’s Central Bank Faces Split Predictions Ahead of Policy Review 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Fed keeps rates steady as strong job market, inflation cloud rate-cut outlook 
Powell Defends Fed’s Independence Amid Trump’s Criticism 
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.
