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

• [New] With inflation risks and central banks continuing to buy gold, there's a growing belief that gold could rise further within 2026. Meta Trading Club
• [New] Many expect the Federal Reserve to cut interest rates again in 2025, which could also support gold. Meta Trading Club
• [New] Softer inflation readings will be welcomed by the Bank of England, which is under growing pressure to continue its rate-cutting cycle. Insurance Business
• [New] More significantly if you are a borrower looking to take out a deal in the next few months, falling mortgage rates is usually a signal that the Bank of England is going to be cutting interest rates. The Money Pages
• [New] The Bank of Korea remains concerned at the tariff impact on economic expansion rather than inflation and is judging how to keep cutting interest rates while weighing stability risks. FDD
• [New] In advanced economies, the Fed will likely ease policy more gradually than the European Central Bank while the Bank of Japan tightens policy prudently in the face of a virtuous wage-ination dynamic. Scribd
• [New] Lower US yields narrowed the gap between American and Japanese interest rates, helping the yen climb despite the risk-on mood in markets. EC Markets
• [New] Should inflation rise again in the US, leading the Federal Reserve to increase interest rates, global borrowing costs will rise, slowing economic activity. UQ News
• [New] Goldman Sachs Asset Management argues that central banks will cut interest rates in the rest of the year, which will lower yields and increase government bond prices. Morningstar, Inc.
• The Reserve Bank of New Zealand is widely expected to hold interest rates at 3.25% this month, but the Reserve Bank of Australia is priced in to cut interest rates by 25 bp to 3.6%, which should continue to add pressure on the Australian dollar. LiquidityFinder
• In the Americas, the US model of massive peacetime fiscal deficits is unsustainable & threatens domestic social-political stability while its financial assets are priced for perfection. (12/16/24) 2025 Outlook Markets Remain Challenging
• UK inflation remains higher than in the Eurozone, supporting expectations that the Bank of England will stay cautious about rate cuts. International Payments & Currency Exchange Rates
• The European Central Bank will follow a dual-track strategy to enable distributed ledger technology (DLT) transaction settlement using central bank money. Kiffmeister Chronicles
• The ECB's Governing Council has approved a plan that will enable settling distributed ledger technology (DLT) transactions using central bank money. Disruption Banking
• While swap rates are moving down and markets remain reasonably confident that the Bank of England will cut the base rate at some stage in 2025, the next cut in August is looking increasingly likely. Mortgage Strategy
• The European Central Bank has eased more decisively and is expected to ease policy further through 2025 while the Bank of Japan (BoJ) continues its slow policy normalization and is expected to gradually tighten policy into 2026. MIT OpenCourseWare
• A Federal Reserve plan to relax leverage rules could free up $185 billion in capital and unlock $6 trillion in balance sheet capacity for large U.S. global banks according to Morgan Stanley. investing.com
• Interest rates will quickly become one of the hot topics in markets over the coming weeks, with the BoE and the Fed in the UK and US respectively both opting to hold this month. The Independent
• One-third of surveyed central banks plan to increase their gold holdings within the next 1-2 years - the highest level of planned gold acquisition in at least five years. Discovery Alert

Last updated: 10 July 2025