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

• [New] In Europe, we expect the European Central Bank to leave interest rates unchanged as policymakers wait to see the impact of U.S. tariffs on euro area activity. BlackRock
• [New] Impending rate cuts from the Federal Reserve will likely spur more countries to do likewise, since following the Fed reduces the risk of local currency depreciation. BlackRock
• [New] On the central bank front, Turkey's TCMB and Russia's Bank Rossiya are expected to cut rates by a further 200 bps to 41.0% and 16.0% respectively, as they continue to dial back previous aggressive rate hikes to counter inflation pressures. ADMISI
• [New] Environmental concerns persist for using vast amounts of energy, while the Bank of England and the Financial Stability Board have warned of potential contagion risks if cryptoasset markets become more interconnected with traditional finance. House of Commons Library
• [New] The Federal Reserve's role in shaping U.S. monetary policy is inherently intertwined with political and regulatory risks, particularly as high-level officials navigate the delicate balance between public service and personal financial interests. Ainvest
• [New] U.S. 10-year Treasury yields held steady at 4.2%, while two-year Treasuries dropped to 3.6%, with markets pricing two quarter-point Federal Reserve rate cuts this year and a Fed funds rate near 3% by end-2026. BlackRock
• [New] Officials agreed in July to be deliberately uninformative on the matter, though a crucial element in their next move will be the US Federal Reserve, now gearing up for a rate cut the following week. financialpost
• [New] From a regulatory standpoint, the Fed's move reaffirms its commitment to its dual mandate of price stability and maximum sustainable employment, with a current leaning towards addressing employment risks. FinancialContent
• [New] Recent indicators have pointed to an economic slowdown, and investors are almost certain the Federal Reserve will cut rates in September. / USA cryptonews
• [New] A soft reading could strengthen expectations for a Federal Reserve rate cut this month, with significant implications for the dollar, equities, and gold. / USA Equiti Default
• [New] Most economists continued to expect the Monetary Authority of Singapore (MAS) to keep policy unchanged at its next three policy meetings. Central Banking
• [New] The European Central Bank is accelerating its plans for a digital euro, arguing it's key to ensuring availability during major disruptions such as banking crises, cyber attacks, and power outages. Bitcoinist.com
• [New] Widespread use of stablecoins could complicate the Fed's control over money supply, necessitating new tools for monetary policy. Tekedia
• [New] A further slump in employment, resulting in a larger-than-expected increase in the unemployment rate, adds to evidence that the Bank of Canada needs to restart interest rate cuts later this month. The Globe and Mail
• [New] The U.S. Federal Reserve is expected to make a relatively straightforward decision to reduce interest rates by at least 0.25%. investing.com
• [New] Current forecasts point to further interest rate cuts, with rates potentially falling to 3% by late 2026. / UK Fox Davidson
• The CME FedWatch tool suggested a 90% probability of a 25-bps rate cut by the U.S. Federal Reserve in mid-September, which could ease pressure on emerging markets, including India. Fortune India
• ECB has announced that it will be restarting its quantitative easing programme in November and has cut its bank deposit rate to -0.5% in a bid to stimulate economic growth. Quarterlytics
• CBDCs could increase monetary policy transmission speed and effectiveness by creating more direct channels between central banks and the broader economy. Discovery Alert
• If inflation remains controlled, the Bank of England may implement further cuts to support growth, potentially lowering the base rate to around 3% by the end of 2026. Fox Davidson
• Weak employment data could strengthen expectations for Federal Reserve rate cuts, potentially weakening the U.S. dollar against major currencies like the euro and British pound. Plus500
• The US Federal Reserve will implement interest rate cuts this month. archyde

Last updated: 11 September 2025