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

• [New] A major concern raised by the Bank of England Governor is the potential risk to financial stability if stablecoins continue expanding without consistent global oversight. MEXC
• [New] The Fed is now seen as unlikely to change its interest rate before 2028 and could even hike. / Iran DailyForex
• [New] The 2026-27 Federal Budget was delivered against a backdrop of geopolitical tensions, rising oil prices following conflict in Iran, stubborn inflation, three consecutive RBA interest rate hikes, and a prolonged period of poor productivity growth. The Retirement Advice Centre
• [New] Midweek, Indonesia's central bank is expected to hold rates steady, highlighting a cautious policy approach as global uncertainties mount. financialpost
• [New] At the same time, stronger than expected US economic data strengthened expectations that the Federal Reserve may keep interest rates higher for a longer period. investing.com
• [New] Bond markets are becoming increasingly worried that inflation will stay elevated for longer, shifting expectations toward the Federal Reserve keeping interest rates higher for longer, or possibly even raising them again. Mortgage News Daily
• [New] Investors are now balancing a significant 11% projected growth in industrial demand against a higher-for-longer U.S. interest rate environment that raises the opportunity cost of holding non-yielding bullion. Bingx Exchange
• [New] Interest rates are expected to remain unchanged despite an uptick in inflation data, as the Federal Reserve is expected to continue delaying rate cuts. / Iran investing.com
• [New] The Central Bank of the Republic of Turkey raised its year-end inflation forecast for 2026 to 26% from 18% in its second inflation report, citing mounting price pressures triggered by the Iran war and disruptions tied to energy markets around the Strait of Hormuz. Turkiye Today
• [New] Turkey's central bank on Thursday raised its end-2026 inflation target to 24% from 16%, acknowledging that inflation is no longer expected to fall as quickly as planned after energy and food price shocks from the war involving the United States, Israel and Iran. Turkish Minute
• [New] The British central bank is expected to leave rates unchanged at 4.75% at its meeting on Thursday and maintain its guidance that a gradual approach to removing policy restraint remains appropriate. CNBC
• [New] Higher oil prices linked to geopolitical tensions could rapidly change inflation dynamics and Monetary Policy expectations. Kalkine
• [New] Lawmakers have halted a key relief measure to shield workers from higher prices, Donald Trump is threatening 25% tariffs on European cars and trucks and markets expect the European Central Bank to hike interest rates. financialpost
• [New] Sticky inflation strengthened expectations that the Federal Reserve could keep interest rates elevated for longer. / USA The Times Of India
• [New] Rising energy prices are increasing inflation risks, central banks have less flexibility to support growth, and high global debt levels are making interest rate decisions more sensitive. investing.com
• [New] A GDP m/m print at or below the -0.2% forecast could trigger a meaningful repricing of Bank of England rate expectations. ThinkCapital
• [New] Trump's pause on Project Freedom operations signals a de-escalation in Iran tensions that could allow crude oil prices to ease and the Federal Reserve additional room to consider rate cuts later in 2026, potentially unlocking growth across airlines, industrials, and consumer discretionary sectors. 24/7 Wall St.
• [New] The European Central Bank has announced changes to streamline the supervision of banks' internal models for credit risk, aimed at making the approval process for material model changes faster and more predictable while maintaining prudential safeguards. JD Supra
• [New] The US dollar remained subdued, trading near six-week lows on the DXY at approximately 97.7-98.2, driven by persistent hopes for a US-Iran peace agreement that diminishes its safe-haven appeal and expectations of Federal Reserve easing amid upcoming CPI data and leadership changes. IC Your Trading Edge | Official Blog | Blog
• [New] Markets have also scaled back expectations for Federal Reserve rate cuts as policymakers warn inflation pressures tied to energy costs, tariffs and geopolitical tensions could persist longer than expected. Benzinga
• [New] Central banks remain accommodative, with the Federal Reserve expected to cut rates by 50 to 75 basis points in 2026 amid sticky inflation. Sprott ETFs
• [New] Whenever there is a Fed transition, Treasury yields, duration risk, and credit spreads usually move faster as markets begin to reassess monetary policy. Synergistic Financial Advisors
• [New] Federal Reserve stress test capital buffers at the largest banks reduce systemic contagion risk even if a smaller institution faces stress. Lines.com

Last updated: 21 May 2026