South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
BOJ Governor Signals Gradual Rate Hikes as Japan’s Inflation Nears 2% Target 
China’s Central Bank to Launch New Digital Yuan Management Framework from January 1 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
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.
