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

• [New] Sustained Chinese selling pressure on US government bonds has broader global interest rate implications, prompting discussion over whether China will pursue a slow, gradual sale or a faster, larger-scale, approach. ATB Financial
• [New] A narrow vote leaves UK interest rates steady at 3.75%, but policymakers and economists signal that inflation relief and economic pressures could bring multiple rate cuts later this year. Grand Pinnacle Tribune
• [New] Last week Turkey's central bank raised its end-2026 inflation forecast range to from 13-19 percent to 15-21 percent and projected inflation at between 6 and 12% at the end of 2027, according to its Inflation Report 2026 I. Turkish Minute
• [New] There is an expectation that the Bank of Japan will be hiking its interest rate soon, which is leading traders to get out of short Yen carry trade positions. / Japan DailyForex
• [New] The Bank of England will watch a slew of data closely in the coming days after a knife-edge decision to keep interest rates steady on concerns that inflation is still uncomfortably high. financialpost
• [New] Rapid debt accumulation is also expected to raise interest servicing costs, complicate monetary policy decisions at the Federal Reserve, and weigh on the international standing of the US dollar in global markets. DID PRESS AGENCY
• [New] If Trump's push toward fiscal dominance over monetary policy prevails, investors would have reason to expect an era of higher U.S. inflation and a weaker dollar. Policy Center
• [New] The European Central Bank is developing the digital euro with expected launch timelines, while countries from Nigeria to the Bahamas have already launched live CBDC systems. Mobile App Development Company
• [New] Egypt: Inflation slowed to 11.9% in January, the lowest since September, potentially allowing further interest-rate cuts (Bloomberg); Announced $1 B Red Sea marina, hotel and housing project to boost tourism and aim for 30 million visitors by 2030 (Reuters). The Africa Brief
• [New] The FCA has set its stall out with a new stablecoin sandbox targeted towards enabling payments innovation, and the Bank of England will offer large-scale stablecoin issuers direct accounts - a bold step taken neither in the EU or the US in developing their respective regimes. FinExtra
• [New] Last month, Turkey's central bank lowered its key interest rate by a less-than-expected 100 basis points to 37%, citing firming inflation, pricing behaviour and expectations that threaten the disinflation process. RTE
• [New] If the global economy remains resilient and reaccelerates in 2026, inflation could increase, leading to higher yields and potentially tighter, not easier, central bank policy. BNY
• [New] The Bank of England on Thursday cut its growth forecast for 2026, from 1.2% to 0.9%, and for 2027, from 1.6% to 1.5%. The Independent
• [New] Central Bank Governor Fatih Karahan announced today an upward revision to Turkey's 2026 year-end inflation forecast range, citing mounting risks and volatility in key indicators. Bianet
• [New] If consumer resilience in the face of 3.5% inflation expectations continues, the Fed may be forced to delay the rate cuts that markets are currently pricing in for the second half of the year, creating a higher-for-longer interest rate environment that could eventually snap the consumer's back. The Chronicle-Journal
• [New] Federal Reserve hawkish policy pivots strengthening dollar positions represent primary downside risk scenarios, while industrial demand substitution at elevated price levels poses medium-term challenges. Discovery Alert
• [New] The weaker-than-expected figures have strengthened expectations of a Bank of England rate cut as soon as March, but subdued growth complicates fiscal consolidation at a time of elevated borrowing costs. / UK Albemarle Street Partners (2026)
• [New] The European Central Bank kept its benchmark rate at 2.0%, expecting inflation in the euro zone to stabilize near its 2% target over the medium term. Ventura Wealth Management
• [New] How inflation evolves will be critical for central bank policy, interest rate expectations and asset valuations, making flexibility and risk management essential for portfolios in 2026. / Australia Macquarie
• [New] The MPC retained a neutral monetary policy stance, indicating that future policy rates could either increase or decrease depending on evolving macroeconomic conditions. Guidely
• [New] The interest rate differential between US and Japanese government bonds has narrowed significantly, which could affect the strength of the Japanese yen over the course of the year. DJE Kapital AG
• [New] Interest rate situation in Japan: Rising interest rates in Japan could still weigh on the national budget and lead to uncertainty and turmoil. DJE Kapital AG
• [New] The FCA, PRA and Bank of England are expected to launch a joint consultation on expectations around the management of ICT and cyber resilience risks in H1. JD Supra

Last updated: 19 February 2026