Central Bank Watch: A divided Fed and Lagarde succession rumours

Central Banks Overview - The Federal Reserve's January meeting minutes revealed a divide among officials regarding future interest rate paths, with some open to rate hikes if inflation remains high [1] - The European Central Bank (ECB) President Christine Lagarde faces speculation about her potential early departure, although she stated her intention to complete her term until October 2027 [2] - The Bank of England is expected to implement two rate cuts this year, influenced by rising unemployment and softer wage growth, alongside a decrease in consumer price inflation to 3% in January [3][4] Economic Indicators - The UK's unemployment rate has reached its highest level in nearly five years, prompting market expectations for rate cuts [3] - Consumer price inflation in the UK has fallen to its lowest level in almost a year, indicating a potential easing of monetary policy [4] - KPMG UK chief economist noted signs of a softer labor market and a positive trend in inflation, suggesting more room for rate cuts [4][5]