Our Scans · (FS.1.02) Central Banking · Weekly Summary

• [New] Lower oil prices following the easing of tensions between the US and Iran have reduced inflation risks and lowered the likelihood of more aggressive rate hikes by the Bank of England. investing.com
• [New] A large majority of central-bank respondents expect global gold reserves to increase over the coming year, while a meaningful share expect to add to their own holdings. investing.com
• [New] The Fed will continue on a gradual rate-cut path in 2027, but the overall downward pace of interest rates will be significantly slower than projected in March, as sticky inflation prevents officials from easing rapidly. tradingkey.com
• [New] A stable or declining inflation expectation, particularly over the longer term, often favors the domestic currency as it could imply a lower likelihood of aggressive monetary policy tightening by the Federal Reserve. / USA AIMS
• [New] Adding to the dollar's appeal is the expectation that hotter inflation will persuade the Federal Reserve to raise interest rates, boosting the attractiveness of U.S. dollar cash equivalents. investing.com
• [New] The Prudential Regulatory Authority strengthened its supervisory expectations on large UK banks and insurers for how they assess and manage risks related to the Net Zero transition and climate impacts. Climate Change Committee
• [New] China's central bank will create a repurchase arrangement for foreign central banks to offer them greater access to renminbi liquidity, in a move experts say is likely to boost sovereigns' appetite for Chinese debt. Central Banking
• [New] If the Fed raises rates in 2026 while the Bank of England keeps them on hold, the divergence in monetary policy will push down the GBPUSD exchange rate and accelerate UK inflation. investing.com
• [New] If the Federal Reserve eventually shifts toward a more accommodative stance, it could increase liquidity flows into risk assets, including Bitcoin. investing.com
• [New] As expected, the US Federal Reserve kept rates on hold (Fed funds target range of 3.5% -3.75%). Royal London Asset Management
• [New] The Bank of England hopes to avoid creating 'undesirable volatility'. The Guardian
• [New] The US Federal Reserve is due to announce its latest interest rate decision in just under four hours, where it is expected to opt for rates on hold. The Guardian
• [New] The Federal Reserve has opted to hold its benchmark rate steady at recent meetings, and now it's possible that the Fed might raise rates. / Iran Bankrate.com
• [New] Stablecoins pose risks to financial stability, monetary policy, and the international monetary order, including run risk from liquidity mismatches and loss of confidence in reserve assets. Gibson Dunn
• [New] The prevailing narrative is that falling oil prices will allow the US Federal Reserve (Fed) to avoid rate hikes, which in turn will spur more liquidity available for speculation. US Institutional
• [New] Central banks such as the Bank of England have started to flag AI-linked asset prices and concentration as a potential financial stability vulnerability. Default
• [New] Deutsche Bank explores whether Bitcoin could join gold as a central bank reserve asset by 2030. The Idea Farm
• [New] Monetary policy is diverging: the US Federal Reserve is expected to hold rates in 2026, while the European Central Bank and Bank of Japan raised rates. Seeking Alpha
• [New] The European Central Bank, which has already increased its benchmark rate to 2.25%, is anticipated to deliver another rate rise in either July or September. IndexBox Inc.

Last updated: 02 July 2026