The Reserve Bank of Australia became the first major central bank in 2026 to raise interest rates, increasing the rate from 3.6 percent to 3.85 percent. This decision was aimed at containing persistent inflation, which remains above the target range of 2 to 3 percent. Although the bank’s governor refrained from outlining a clear future path for rates, today’s move signals policymakers’ concerns about sustained inflationary pressures in the Australian economy. During the session, the Australian dollar strengthened following the hawkish stance of Governor Bullock.

The U.S. Bureau of Labor Statistics, BLS, announced that due to a partial federal government shutdown, the key January employment report will not be released as scheduled on Friday. Other labor market reports scheduled for this week will also be postponed. This shutdown occurred due to Congress failing to pass a budget. The January report, in addition to monthly data, was expected to include significant annual revisions to employment figures, which were anticipated to show that job growth in the year ending March 2025 was weaker than initial estimates. A new release date will be announced once government funding is secured.

China’s central bank lowered its one-year lending rate to banks to the lowest level on record in order to reduce financing costs and support economic growth. According to informed sources, the People’s Bank of China, PBOC, reduced the medium-term lending facility, MLF, rate to 1.5 percent in January, down from 1.55 percent in December. The central bank has not changed its policy rate since May 2025 and has opted for a gradual and low-profile approach rather than shock measures to support a fragile economy. This rate cut comes as China’s economy faces deflationary pressures and a prolonged downturn in the property sector.

According to Axios, nuclear talks between Iran and the United States are scheduled to be held on Friday in Oman. The meeting, which was initially planned to take place in Turkey, was moved to Oman at Iran’s request. The talks could play a decisive role for the region and Iran’s economy. Despite news of the negotiations, domestic markets appear to remain skeptical about their outcome.