RBNZ Holds Rates at 2.25% as Middle East Conflict Fuels Inflation Concerns 
Singapore Tightens Monetary Policy Amid Middle East War Inflation Risks 
RBI Holds Interest Rates Steady Amid Middle East Tensions and Global Uncertainty 
Bank of Japan Eyes April Rate Hike Despite Inflation Dip, ING Says 
Bank of Korea Governor Nominee Warns of Action if Korean Won Weakens Further 
Australia Bans Card Payment Surcharges Starting October 2025 
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
Bank of Japan Officials Signal Continued Interest Rate Hikes Amid Inflation Concerns 
Bank of Japan Signals Rate Flexibility Amid Yen Volatility 
Federal Reserve Probes Big Banks Over Private Credit Exposure Amid Growing Systemic Risk Concerns 
Bank of Korea Nominee Shin Hyun-song Signals Possible Rate Hike Amid Middle East Inflation Fears 
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.
