Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
Kevin Warsh Faces Early Fed Test as Inflation Risks Challenge Rate-Cut Expectations 
RBI Holds Interest Rates at 5.25%, Cuts India Growth Forecast Amid Rising Global Risks 
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.
