The Reserve Bank of New Zealand kept the interest rate at 2.25%, the lowest level in about three and a half years, and said monetary policy will remain supportive for now. Anna Breman said the economy is still in the early stages of recovery and that premature tightening could weaken growth. Markets, which had expected faster tightening, were disappointed, the New Zealand dollar weakened and expectations for a near-term rate hike declined. The bank forecasts inflation will fall to around 2.3% by the end of 2026, with possibly only a limited increase later in the year.

UK inflation fell to 3% in January, the lowest level in 10 months, strengthening the case for a rate cut at the Bank of England’s March meeting. Lower fuel prices were the main driver of the decline, although services inflation remains relatively elevated. Members of the Monetary Policy Committee are divided over the timing of rate cuts, but recent data support a downward trend in price pressures. The central bank expects inflation to return to its 2% target in the spring, while signs of labor market weakness are also emerging.

The minutes of the January Federal Reserve meeting showed that officials, contrary to market expectations, were cautious about cutting interest rates, and some even suggested the possibility of a rate hike. Most policymakers believe that last year’s labor market weakness is fading, but the risk of persistent inflation remains. This approach could put the Federal Reserve at odds with Donald Trump, who has repeatedly called for rate cuts. At the same time, this situation complicates the task of Warsh, Trump’s nominee for the future chair of the central bank.

Karine, the White House spokesperson, stated that only limited progress was made in the US-Iran negotiations. Axios also reported that the geo negotiations were hollow, and Trump moved closer to war; oil prices rose nearly 5 percent following the Axios report. She added that significant progress was made in yesterday’s Ukraine talks, and the next round of talks will be held in the future.