Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
The European Central Bank (ECB) will announce a 0.25 percentage point cut in the interest rate, lowering the rate on its deposit facility to 2.50%. This move is widely anticipated but is open to contention among policymakers about the future direction of rate cuts, with some contending that there may be a pause due to concerns that policy can no longer be described as clearly restrictive.
The action is amid a sufficiently decelerating rate of inflation, even though core inflation remains a problem, and the ECB wishes to maintain a medium-term inflation target of 2%. Economic growth in the eurozone is weak, with downside risks, further to support the case for monetary loosening.
Markets anticipate further rate cuts, even to 2% by end-2025, and are looking closely at the ECB forward guidance and new economic projections. The neutral rate is in debate, with ECB President Christine Lagarde placing it in the range of 1.75% to 2.25%
