Central Bank Meetings of 2025

By Alun John

Overview

The first central bank meetings of 2025 indicate diverging economic paths, with the U.S. holding rates steady, the eurozone cutting, and Japan raising rates.

Current Standings

1. Switzerland

The Swiss National Bank (SNB) reduced its benchmark rate to 0.5% in 2024. Inflation is under control, leading to expectations of a further 25 basis points cut in March.

2. Canada

The Bank of Canada cut its key policy rate by 25 basis points to 3%. Growth forecasts were lowered, and a potential tariff war with the U.S. threatens economic stability. At least one more rate cut is anticipated.

3. Sweden

The Riksbank lowered rates by 25 basis points to 2.25% to support growth. Although further cuts might not happen, the bank remains ready to adjust based on economic conditions.

4. New Zealand

The Reserve Bank of New Zealand has reduced the rate by 125 basis points since August due to eased inflation and a recession. A potential further cut of 50 basis points is on the table.

5. Euro Zone

The European Central Bank cut rates by 25 basis points, marking its fifth cut since June 2024, with expectations for additional cuts this year due to controlled inflation.

6. United States

The Federal Reserve maintained steady interest rates, focusing on future economic policies before making any cuts. No immediate changes are anticipated.

7. Britain

The Bank of England is set for another 25 basis points cut, managing conflicting inflation and economic signals. Expectations for two additional cuts exist this year.

8. Norway

Norway’s central bank held rates at a 17-year high of 4.5% but plans three future cuts according to forecasts, aligning with market expectations.

9. Australia

The Reserve Bank of Australia is nearing its first rate cut due to slowing inflation. An 80% chance for a 25 basis points cut in February is anticipated.

10. Japan

The Bank of Japan is the only G10 bank in a hiking cycle, raising rates to 0.5% and signaling future increases, supported by strong inflation forecasts.