Monetary policy Financial News

The central bank's Monetary Policy Committee voted to hold interest rates at 5.25%.

monetary policy decision, while investors assessed the potential impact of Trump’s tariff policies. The Fed is widely expected to keep interest rates unchanged in its policy statement, alongside an updated summary of economic projections (SEP).

Japanese Yen has set off alarms in the world of international finance and monetary policy. For the first time since 1990, the yen has weakened past the 160 level against the U.S. dollar, representing a staggering 20% loss in purchasing power over just the last year. This historic slide begs the question — is the yen acting as the proverbial «canary in the mine», providing an early warning sign of deeper systemic risks brewing in the global monetary system? The crisis facing the yen stems from a confluence of factors that have pushed the Bank of Japan into an economic policy corner. With a debt-to-GDP ratio of over 260%, among the highest in the world, Japan has been effectively locked into keeping interest rates at ultra-low levels, near zero, for years. Even as inflationary pressures have built, the BOJ has resisted aggressive rate hikes for fear of making their enormous debt burden even more unmanageable.

transaction volumes and higher interest income earned on its stablecoin reserves, sending the crypto exchange's shares up 8% in extended trading. A rebound in crypto prices in the last few months, thanks to optimism around the U.S. Securities and Exchange's approval of the first spot bitcoin-exchange traded funds (ETFs), helped rekindle investor enthusiasm for crypto.

According to the Bureau for Labor Statistics, the US Consumer Price Index fell to an annual rate of 3.1% in January, down from 3.4% in December. However, this figure came in higher than the 2.9% anticipated by economists.

Sarah Breeden (pictured), the Bank of England's new deputy governor for financial stability.

The ECB’s pause follows the decisions of the US Federal Reserve and Bank of England to also hold rates steady as inflation eases.

Megan Greene (pictured) was part of a minority group of three members who voted to increase interest rates to 5.5% during the recent MPC meeting.

Chancellor Jeremy Hunt (pictured). Copyright HM Treasury

Catherine Mann is a member of the Bank of England's Monetary Policy Committee

IMF) and the Financial Stability Board (FSB) has set out a roadmap to coordinate measures to stop crypto assets from undermining macroeconomic and financial stability. However, the synthesis, put together at the request of the Indian G20 presidency, stopped short of endorsing a blanket ban on such assets, saying it can be “costly and technically demanding to enforce”. The crypto asset regulation is a key part of the agenda for G20 leaders when they meet in New Delhi this weekend. The IMF-FSB Synthesis Paper: Policies for Crypto-Assets provides comprehensive guidance to address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through so-called decentralised finance (DeFi).

The People’s Bank of China cut the rate on the medium-term lending facility (MLF) overnight, with a 15bp cut down to 2.5%.