BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
With ECB President Draghi only last week noting that "we will do what we must to raise inflation", expectations are widespread for a multi-faceted easing. This is likely to include a 20bp deposit rate cut, and both a larger and longer asset purchase programme.
Some uncertainty remains about what other measures the ECB could adopt that could yet be clarified by judiciously-timed leaks. A two-tier approach to a reduction in the deposit rate is apparently being considered for larger balances.
"The ECB might also make changes to the main refinancing rate. Overall, the market consensus is mostly around the view that Draghi will not want to disappoint. Yet, any desire to keep some policy powder dry means that the checklist of announced measures could underwhelm, even if compensated by hints of future action. Meanwhile, Eurozone-wide inflation data (Wed) will provide an update in advance of the policy decision and updated ECB economic projections",notes Lloyds Bank.
