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

• [New] The European Central Bank has officially moved to the next phase of its digital euro project, targeting potential issuance of a central bank digital currency (CBDC) in 2029, with a 2027 pilot contingent on legislation. U.S. interest rates uncertainty causes US$1.3b crypto s
• [New] Challenges include potential complications for monetary policy effectiveness due to bank disintermediation, ongoing financial stability risks (especially from unregulated stablecoins), and the potential for regulatory arbitrage across fragmented global frameworks. FinancialContent
• [New] With the Bank of England now expecting inflation to fall towards its 2% target over the coming months, a cut is looking more likely going forward. Tembo Money
• [New] The Bank of England says it will roll out its stablecoin framework as quickly as the US, focusing first on systemic coins. Coinpedia Fintech News
• [New] Between 2027 and 2030, we anticipate the emergence of comprehensive central bank digital currency (CBDC) frameworks that will interact with existing cryptocurrency regulations. #1 Futurist Speaker on AI Leadership, Future of Work, F
• [New] Federal Reserve Policy Outlook - With inflation still above the long-term target but growth showing cracks, traders expect the Fed to hold rates steady through year-end. STL.News
• [New] Central bank guidance from the Federal Reserve, ECB, and Bank of England will be crucial for understanding future interest rate paths. FinancialContent
• [New] The Federal Reserve has already begun cutting interest rates, citing downside risks to employment, while companies across various sectors announce massive job reductions, often attributing them to cost-cutting and the rapid integration of artificial intelligence. The Chronicle-Journal
• [New] The cautious stance of the U.S. Federal Reserve regarding rate cuts influences EM central banks, as they seek to avoid a rapid narrowing of interest rate differentials, which could trigger capital outflows. / Brazil The Chronicle-Journal
• [New] With the ECB's own growth forecasts indicating that the eurozone economy will grow by slightly more than 1% each year and inflation will settle down to 2% over the next few years, there is indeed very little reason to change its monetary policy stance. ING Think
• [New] Inflation has eased to about 2.5% core PCE but faces upward pressure from tariffs, potentially delaying further Federal Reserve rate cuts (fed funds now at 4.5-4.75%, with only 1-2 more expected in 2025). / USA Medium
• [New] Pricing for the 2026 Bank of England easing cycle appears to be about right, with the terminal rate currently priced near 3.25%. / UK investing.com
• [New] The Bank of England has held interest rates at 4% again but there are hopes they may be cut before the year is out. The Money Pages
• [New] The Federal Reserve is expected to maintain a data-dependent, flexible monetary policy. / USA The Chronicle-Journal
• We anticipate both the European Central Bank and Bank of England to hold rates steady for the remainder of 2025 but believe that risks skew towards both cutting early next year if inflation undershoots expectations. / USA Goldman Sachs Asset Management
• The U.K. government's upcoming budget will focus on lowering inflation and paving the way for the Bank of England to lower its key interest rate. Morningstar, Inc.
• Persistent inflation, especially high food prices, and the lingering impact of tariffs will continue to erode purchasing power, while monetary policy uncertainty, exacerbated by the government shutdown hindering data availability, will keep the Federal Reserve in a precarious position. FinancialContent
• The European Central Bank held rates for a third straight meeting and noted monetary policy is in a good place, while the Bank of Japan (BOJ) also kept rates unchanged as expected. Clear Financial Group
• The parliament vote drove down the yen and bond yields on expectations Takaichi's presence could delay further interest rate hikes by the Bank of Japan. / Japan The Asahi Shimbun
• Central banks in Australia, Sweden, and Brazil are expected to keep interest rates unchanged, while the Mexican central bank may consider cutting them. Sada News Agency
• The Bank of England has opened a digital pound lab, but a go / no-go decision is not expected until 2026. Business of Payments
• Looking ahead, if the Federal Reserve accedes to pressure and implements further aggressive rate cuts into 2026, technology growth stocks could emerge as significant beneficiaries. FinancialContent
• As anticipated by markets and economists, the US Federal Reserve cut interest rates by another 25 basis points for the second month in a row, taking the Fed Funds rate to 3.75% -4%. Propel Financial Advice

Last updated: 13 November 2025