Core Viewpoint - The Central Bank of Egypt has decided to lower the benchmark interest rate by 200 basis points, indicating a shift in monetary policy aimed at stimulating economic activity [1] Group 1: Interest Rate Changes - The overnight deposit and lending rates have been adjusted to 22% and 23% respectively [1] - The main operational interest rate is now set at 22.5% [1]

Core Viewpoint - The Canadian annual inflation rate decreased from 1.9% to 1.7% in July, primarily due to a 16.1% year-on-year decline in gasoline prices, while core inflation indicators remain strong [1] Inflation Data - The monthly Consumer Price Index (CPI) rose by 0.3% in July, with the annual inflation rate falling below the Bank of Canada's target midpoint of 2% [1] - Excluding gasoline prices, the July CPI increased by 2.5% [1] - Food prices rose by 3.3%, and housing costs, which are the largest component of the CPI, increased by 3%, marking the first rise since February of the previous year [1] Core Inflation Indicators - The CPI-median increased from 3% to 3.1%, while the CPI-trim remained stable at 3% [1] - Despite the annual inflation rate being below the target range, 37.3% of the CPI basket saw price increases exceeding 3% [1] Market Expectations - The probability of a rate cut by the Bank of Canada on September 17 is estimated at 32% according to money market data [1] Currency Movement - The USD/CAD exchange rate was reported at 1.3881, with an increase of 0.08%, breaking through resistance levels above 1.38 [1] - The upward momentum of the USD/CAD pair is supported by strong daily and intraday trend indicators, suggesting a continuation of the upward trend [1]

Core Viewpoint - UK inflation accelerated to 3.8% in July, the fastest increase in a year and a half, surpassing analyst expectations and dampening hopes for recent interest rate cuts by the Bank of England [1] Group 1: Inflation and Monetary Policy - The Bank of England's decision to cut interest rates was narrowly approved with a vote of 5 to 4, indicating a cautious approach due to persistent inflation above target levels [1] - UK inflation is projected to reach 4% in September, which is double the target rate, influenced by significant increases in utility bills since April [1] - The UK labor market remains tight, contributing to upward price pressures, with wage growth around 5%, complicating the Bank of England's belief in a swift return to the 2% inflation target [1] Group 2: Comparative Inflation Rates - UK inflation is higher than that of the US, which stood at 2.7% in July, and also exceeds the Eurozone, where inflation is expected to remain close to the European Central Bank's 2% target in the coming years [1]

Group 1 - The UK economy showed resilience in Q2, with a GDP growth rate of 0.3% in June, exceeding expectations [1] - The performance of the economy provides some comfort to Chancellor Reeves, but raises the threshold for further interest rate cuts by the Bank of England [1] - Factors impacting the economy include a £26 billion tax increase policy, rising regulated prices, and the impact of tariffs from the US [1] Group 2 - The GBP/USD exchange rate is expected to have limited downside, ideally supported around the 1.3500 level, which would allow for a healthy correction [2] - A successful breakout above the 1.3588-1.3618 resistance zone could open up potential towards 1.3788, marking the highest level since October 2021 [2]

Group 1 - The Ministry of Finance, the People's Bank of China, and the Financial Regulatory Administration have introduced two loan interest subsidy policies aimed at stimulating consumer spending and impacting the bond market [1][2] - The subsidy policy acts as a targeted interest rate cut, effectively reducing the financing costs for consumers, with potential rates dropping to as low as 1.75% for personal loans [1][2] - The implementation of the subsidy policy is set to last until August 31, 2026, allowing the central bank to monitor its effects on core CPI before making further interest rate decisions [2][4] Group 2 - The current liquidity in the interbank market remains comfortable, with overnight repo rates hovering around 1.31%, indicating ample supply [3] - August is a significant month for government bond net supply, which is expected to maintain liquidity stability, despite potential short-term tightening due to tax periods [3] - The anticipated increase in inflation expectations due to supply-side policies and consumer loan subsidies may lead to a cautious approach from the central bank regarding interest rate cuts, further delaying any potential reductions [4]

Core Insights - The Central Bank of Chile plans to implement interest rate cuts in late 2025 and early 2026, with the first expected cut possibly occurring in September 2025 instead of October [1] Group 1 - The last interest rate cut occurred at the end of July 2025, with the current monetary policy rate standing at 4.75% [1] - The Vice President of the Central Bank, Jones, shared these insights during an interview with CNN Chile [1]

Core Viewpoint - The Central Bank of Kenya has reduced the key interest rate from 9.75% to 9.50%, marking a cumulative decrease of 350 basis points since August 2024 [1] Group 1 - The recent interest rate cut aims to stimulate economic growth and manage inflation [1] - The cumulative reduction of 350 basis points indicates a significant shift in monetary policy over the past year [1] - The current interest rate of 9.50% reflects the Central Bank's ongoing efforts to support the economy [1]

Core Viewpoint - The Reserve Bank of Australia (RBA) has lowered the benchmark interest rate by 25 basis points to 3.6%, marking the third rate cut this year, amid high global economic uncertainty and its potential negative impact on domestic spending [1] Economic Outlook - The RBA's monetary policy statement indicates that global economic uncertainty remains high, with trade policy developments expected to adversely affect global economic activity, leading households and businesses to delay spending [1] - The RBA expresses a cautious outlook on the economic prospects due to significant uncertainties on both the demand and supply sides [1] Interest Rate Changes - From May 2022 to November 2023, the RBA raised interest rates by a total of 425 basis points [1] - Following a period of maintaining the rate, the RBA announced a rate cut of 25 basis points in February 2023, bringing the rate down to 4.1% [1] - The second rate cut of the year occurred in May 2023, reducing the benchmark rate to 3.85% [1]

Core Viewpoint - The Reserve Bank of Australia has lowered the benchmark interest rate by 25 basis points to 3.6%, marking the third rate cut in 2023 following reductions in February and May [1] Summary by Relevant Sections - **Interest Rate Changes** - The RBA has cut the benchmark interest rate three times in 2023, with the latest reduction bringing it down to 3.6% [1] - Prior to the cuts in 2023, the RBA had increased the benchmark rate by a total of 425 basis points from May 2022 to November 2023 [1] - The rate was first reduced to 4.1% in February 2023, followed by a second cut to 3.85% in May 2023 [1]

Core Viewpoint - The Reserve Bank of New Zealand is expected to further lower the official cash rate next week, with economists focusing on the central bank's future forecasts [1] Group 1 - Economists predict a 25 basis point cut to the official cash rate, bringing it down to 3.00% [1] - Weak high-frequency data is increasingly evident in hard economic data, suggesting a potential shift to a more dovish stance by the Reserve Bank of New Zealand [1] - There is speculation that the official cash rate could eventually be lowered to 2.5% [1] - However, a sudden shift in direction next week may be premature [1]