Central banks worldwide are adopting divergent monetary policies as they respond to varying local economic conditions. As of late 2025, the European Central Bank (ECB) has maintained its interest rates, while the Bank of England has reduced its rates to a three-year low. In contrast, Japan has increased its rates to a 30-year high, despite the yen's depreciation.
Amid these shifts, the focus on countering the financing of terrorism remains a priority. Economic uncertainties persist with China's economic slowdown and mixed data from the U.S. adding to the unpredictability for 2026. ECB President Christine Lagarde has expressed confidence in growth resilience, although Germany's industrial sector shows signs of weakening. Meanwhile, Thailand and several emerging markets have opted to ease their monetary policies.
Global Central Banks Diverge in Monetary Policies Amid Economic Uncertainty
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