Welcome to Shaping Tomorrow

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

  • [New] 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
  • [New] 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
  • [New] UK - We expect the Bank of England to lower rates by 25 bp, taking Bank Rate to 3.75%. ABN AMRO Bank
  • [New] Expectations that the U.S. Federal Reserve could further lower interest rates have supported higher gold prices. Ecofin Agency
  • [New] Inflation is expected to decelerate moderately, and the cycle of monetary policy easing is likely to continue in 2026. / USA economic-research.bnpparibas.com
  • [New] As the U.S. Fed moves toward easing, it provides policy cover for other central banks, such as the European Central Bank and the Bank of England, to follow suit without risking significant currency devaluation against the dollar. Valley City Times-Record
  • [New] Central bank demand for gold has been elevated for four years and is likely to continue into 2026, alongside strong investment demand. GV Wire
  • [New] After the Federal Reserve enacted its third and final interest rate cut of the year, the banks, insurance companies, credit services, fintech firms and payment processors who call the financials sector home are well-positioned for a strong start to 2026. investing.com
  • [New] The recent choppiness largely reflects two forces: increasing questions over massive corporate investment in AI infrastructure and shifting expectations for further Federal Reserve interest rate cuts in 2026. investing.com
  • [New] The Bank of Japan's interest rate hike on Friday, which is the largest in three decades and signals its readiness for further hikes, could disrupt bullish bets on more interest rate cuts by the Federal Reserve in 2026, potentially hampering further upside for gold prices. investing.com
  • [New] Traders' bets imply a 98% chance the Monetary Policy Committee will lower the base rate to 3.75% from 4%. Yahoo Finance UK
  • [New] Among the central banks making decisions this week, the Bank of Japan is expected to hike rates by 25 basis points to 0.75%, while the Bank of England may make an equal-sized cut to 3.75%. Australian Broadcasting Corporation
  • [New] With the ECB's mandate to maintain price stability at 2% inflation, higher inflation could justify higher rates, not cuts. Morningstar, Inc.
  • The BoE is expected to cut its key interest rate, the ECB to keep it steady, and the BoJ to raise it. economic-research.bnpparibas.com
  • ECB stays put: The European Central Bank kept its deposit rate at 2.0% whilst upgrading 2026 forecasts-growth from 1.0% to 1.2%, inflation from 1.7% to 1.9%. IG
  • The European Central Bank kept its policy rate at 2.0%, a move widely anticipated by markets, while reconfirming the likely end of its easing cycle. Nuveen
  • Banks and diversified financial services firms benefited from expectations that net interest margins could remain resilient even if the Federal Reserve begins to ease policy in 2026. STL.News
  • Geopolitical risk will remain elevated due to economic sovereignty and global rivalries, with widespread monetary policy desynchronization expected in 2025 as central bankers respond to divergent conditions. Medium
  • The European Central Bank is on hold for the foreseeable future, while the Bank of Japan is likely to maintain its steady pace of rate increases into 2026. Oakglen Wealth - Advisory and Discretionary Management
  • With U.S. and UK rates nearing neutral and central bank influence on markets likely to be more muted, the implications for currencies, bonds, and equities remain important as we head into 2026. Oakglen Wealth - Advisory and Discretionary Management
  • Most economists expect the BOJ to raise its benchmark interest rate once more in 2026 to hit 1%. BBC News
  • Sticky inflation could keep the Federal Reserve cautious, weighing on Bitcoin. investing.com

Last updated: 01 January 2026


Login

REMIND ME