Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Our expectations are in sharp contrast to expectations from big investment banks. As situation has improved both in inflationary terms globally and financial markets, oil price edged up, along with industrial commodities we don't expect European Central Bank (ECB) to do much today. Due to increased risks towards banking sector, we don't expect ECB to cut deposit rates further and increase stimulus by no more than € 10 billion.
Followings are the calls from analysts at big investment banks -
- Barclays - 10 basis points rate cut. No increase in asset purchase. No increase in purchase timeline. Inclusion of more instruments (semi-public entities) into the purchase program.
- Citi - 10 basis points rate cut. €15 billion increase in asset purchase. No increase in purchase timeline.
- Credit Suisse - 10 basis points rate cut. €20 billion increase in asset purchase. No increase in purchase timeline. Inclusion instruments like index or corporate credit or synthetic basket.
- Goldman Sachs - 10 basis points rate cut. €10 billion increase in asset purchase. 6 months increase in purchase timeline.
- HSBC - 10 basis points rate cut. No increase in asset purchase. No increase in purchase timeline. Introduce more LTROs.
- Morgan Stanley - 10 basis points rate cut. €20 billion increase in asset purchase. No increase in purchase timeline.
- RBS - 20 basis points rate cut. €10-15 billion increase in asset purchase. No increase in purchase timeline.
- UBS - Minimum 10 basis points rate cut. €10 billion increase in asset purchase. No increase in purchase timeline. Introduce more LTROs. Include non-bank corporates in purchase list.
