Major central banks deliver biggest easing push in over a decade in 2025

Central Banks' Rate Cuts - Major central banks have implemented interest rate cuts in 2025 at the fastest pace and largest scale since the financial crisis, with significant easing also observed in developing nations [1][2] - Nine central banks overseeing the 10 most traded currencies lowered their benchmark lending rates, delivering a total of 850 basis points across 32 rate reductions, marking the largest number of cuts since 2008 and the most extensive easing since 2009 [2] Change in Monetary Policy Tone - There has been a notable shift in monetary policy tone ahead of 2026, contrasting sharply with the rate hikes seen in 2022 and 2023 aimed at combating inflation due to rising energy prices [3] - Analysts suggest that 2026 may see a change in direction, with expectations of potential rate hikes from several G10 central banks, particularly Canada and Australia [3][4] Emerging Markets' Rate Cuts - In December, eight central banks from a sample of 18 developing economies delivered 350 basis points of cuts, contributing to a total of 3,085 basis points of easing across 51 moves in 2025, significantly surpassing the 2,160 basis points in 2024 [6]