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

• [New] The U.S. Federal Reserve will likely cut rates more in 2026 than both central bankers and financial markets expect. Morningstar, Inc.
• [New] The monetary policy decisions of the U.S. Federal Reserve, which is widely expected to implement two interest rate cuts in 2026, will continue to significantly influence capital flows and investor sentiment across Asia. Whalesbook
• [New] In the UK, one rate cut in 2026 is fully priced in, but several economists predict the Bank of England will ease rates at least twice. The Guardian
• [New] Gold is expected to remain supported by sustained central bank buying and strong investor demand, with projections pointing to a sharp rise by late 2026, driven in part by declining trust in major currencies and a broader search for durable stores of value. Medium
• [New] The Bank of England's Monetary Policy Committee will reduce the Bank Rate by 25 basis points each in December and Q1 2026, resulting in a terminal rate of 3.5%. CBI
• [New] The US Federal Reserve faces a dilemma between raising interest rates to fight inflation-risking a collapse of inflated asset markets - or maintaining easy monetary policy and eroding the dollar's real value. bricsgrain
• [New] Economists are looking ahead to 2026 for potential triggers of sterling weakness, including weak UK growth, further interest rate cuts from the Bank of England, and ongoing political risk from UK fiscal policies. Morningstar, Inc.
• [New] Currency traders are focused on the Bank of England's next moves, as UK interest rate cuts could weaken sterling against the dollar and euro. Morningstar, Inc.
• [New] Most major banks expect the overnight rate to sit at 2.25% through much of 2026, reflecting a central bank that is broadly comfortable with inflation progress but cautious about declaring victory. Mortgage Rates & Mortgage Broker News in Canada
• [New] BMI expects gold to average higher in 2026 than in 2025, though prices are likely to ease later in the year as the effects of global monetary stimulus wane and the US Federal Reserve wraps up its rate-cutting cycle. Grand Pinnacle Tribune
• [New] More of the heavy lifting has been done by the Bank of Canada, so we do not expect any changes to interest rates in 2026 in terms of rate cuts, but we do think that now fiscal policy should do its job. BNN Bloomberg
• [New] A cautious Federal Reserve will want to keep interest rates higher this year and next to counter tariff-induced inflationary pressures, slowing growth prospects overall. / USA Office of the New York City Comptroller Brad Lander
• [New] The price drop eased inflationary pressures, prompting the U.S. Federal Reserve to cut rates three times, though it threatens to disrupt budgets for oil-producing nations and companies. GeopoliticsUnplugged Substack
• [New] The coming twelve months will be defined by the transition from artificial intelligence speculation to tangible productivity gains, all while the Federal Reserve navigates a delicate descent toward a neutral interest rate environment. FinancialContent
• [New] Central bank purchases and continued safe-haven interest will likely support gold in 2026, with projections from Goldman Sachs and UBS pointing toward $5,000 per ounce. Economic Times
• [New] 2025's gains were driven by several factors including expectations of more interest rate cuts, but experts warned sharp increases over the year could lead to a drop in gold and silver prices in 2026. BBC News
• [New] Deutsche Bank economists anticipate only two further US Federal Reserve rate cuts before a pause, while the European Central Bank is expected to remain on hold until a possible hike in mid-2027. Proactiveinvestors NA
• [New] The European Central Bank left borrowing costs unchanged in a widely expected move, and it raised some growth projections as well. / USA ADM Investor Services
• Several central banks, including the Royal Bank of Australia a day ago, have already signaled that their next rate change could be a hike. Chrisman Commentary
• We see the potential for a Bank of Japan rate hike; expect the Bank of England to cut; and think the European Central Bank will hold rates steady, even as it turns more hawkish. BlackRock
• UK - We expect the Bank of England to lower rates by 25 bp, taking Bank Rate to 3.75%. ABN AMRO Bank
• Expectations that the U.S. Federal Reserve could further lower interest rates have supported higher gold prices. Ecofin Agency

Last updated: 08 January 2026