Archive

November 06, 2025
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Malaysia Defies Regional Easing

  • Bank Negara maintained the OPR at 2.75% in November 2025, aligned with forecasts, reflecting confidence in steady 5.2% Q3 growth and contained inflation.​
  • The decision contrasts with regional easing trends; the central bank views the current stance as appropriate amid resilient domestic demand and easing tariff uncertainties.​
  • Forward guidance indicates rates are likely to be stable through mid-2026, contingent on global trade developments, inflation trends, and US rate shifts.
November 06, 2025
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Mexico: Cautious Easing in Uncertain Times

  • Banxico cut rates by 25bp to 7.25%, in line with the consensus. Guidance turned more cautious, with policymakers less committed to further easing soon.​
  • The 4-1 vote (one dissent for a hold) underscores internal concern about persistent core inflation, which could constrain scope for additional rate cuts.​
  • With GDP contracting and core prices sticky, future rate moves hinge on inflation's path and external risks. The pace of easing will likely slow from here.
November 06, 2025
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Inflation Persistence Constrains Norges Bank

  • The Norges Bank held rates at 4% as expected. Core inflation at 3% constrains further cuts despite emerging economic slack in the coming year.
  • Governor Bache stressed the bank is "not in a hurry" to cut rates, projecting one reduction annually through 2028. Cuts depend on disinflation progressing as forecast.
  • December's new forecasts will be critical—faster disinflation or sharper labour market weakness could accelerate cuts, while persistent inflation could keep rates higher for longer.
November 05, 2025
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Swedish Rate Pause: Recovery Rising, Risks Remain

  • The Riksbank left rates unchanged at 1.75%, matching consensus. Inflation is easing but is still above target, signalling little chance of cuts or hikes in the near term.​
  • A weak labour market offset stronger-than-expected Q3 growth. Policymakers are watching household demand closely to assess the durability of the recovery before shifting rates.​
  • Ongoing risks from geopolitics, trade, and fiscal policy keep the future rate path uncertain, with market pricing in steady rates through 2026 barring major shocks.

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