Interest rates
YCC, carry trades and the changing role of the yen
Marcello Minenna argues that as the BoJ adjusts its policy regime, changes in carry positioning are increasing the instability of the correlation between exchange rates and yield differentials
Chile holds rates amid upcoming surge in fuel prices
Measure by new government will allow fuel prices to jump on March 26
BoE faces its toughest test in four years
Path to contain inflation from supply-side shocks is different compared with 2022–23
Backdrop to energy shock ‘more benign’ than in 2022 – Lagarde
ECB president says it is still too early to tell if rates will have to rise in response
PBoC reserve ratio cut spurs short-term FX hedging
Removal of 20% forex risk rule drives exporters towards options and onshore forwards
Fed should still ease policy amid energy shock – Miran
Governor says his outlook for four rate cuts this year remains unchanged
Economists expect BoK to tilt hawkish under Shin
Expert says new governor to bring ‘distinctly BIS-influenced framework’ to South Korean central bank
Paraguay signals neutral stance with pause in easing cycle
Central bank expects inflation to rise to 3.5% target by end of year
Interest rate crosswinds buffet IRRBB teams
Political intervention and rapid-fire law changes are skewering bank models for forecasting cashflows
ECB holds rates, predicts 2.6% inflation for 2026
Lagarde presents gloomy outlook for eurozone inflation and growth as energy prices spike
Brazil starts easing with cautious rate cut amid oil shock
BCB says Middle East conflict has intensified domestic inflation risks
Fed holds amid uncertainty over oil shock and tariffs
Powell pledges to stay on as interim chair if Warsh’s nomination is not confirmed in Senate
Canada holds rates amid potential energy shock and jobs downturn
Governor Macklem says sustained higher prices would warrant monetary response
Iceland hikes rates by 25bp
Inflation continues to rise as central bank aims to pre-empt effects of energy shock
Australia hikes rates to combat inflation
RBA says price rises are result of capacity pressures, and persistent oil rally may worsen situation
HKMA deputy says credit risks to remain ‘complex’ in 2026
Yuen notes continued pressure on Hong Kong’s commercial real estate market
Peru’s central bank holds rates as inflation picks up
BCRP says bad weather, domestic gas shock and fallout from Middle East conflict will push up prices
RBI buys bonds as Iran war threatens economic outlook
Economists expect central bank to stay on hold, despite risk of higher inflation and lower growth
Pakistan holds rates, citing uncertainty from Iran war
Central bank expects inflation to remain above its 5–7% target
Governor of the year: Jerome Powell
The Fed chair has shown high levels of integrity and resolve in upholding his public duty in the pursuit of price stability and maximum employment
PBoC plans more market-based monetary policy formulation
Analysts expect Middle East conflict to have little impact on policy in China
Bangladesh Bank faces fresh questions over independence
Experts question governor’s affiliations after activists petition Supreme Court to have him removed
Central Bank of West African States eases policy by 25bp
BCEAO says negative inflation prompted decision, but expects prices to rise in 2026
Poland cuts rates against backdrop of falling inflation
Central bank lowers projections for price growth, while warning of geopolitical uncertainty