ECB on hold as Fed and Bank of England to cut rates in 2026

The incoming Fed Chair Kevin Warsh would like rates lower. 

With the first set of central bank meetings this year now in the rearview mirror, it's worth taking stock of where each of the Fed, Bank of England and ECB stands in relation to one another. 

The Fed and Bank of England can be grouped together in ‘active’ mode, with further rate cuts expected in 2026, despite both holding at their recent meetings. This makes some sense given both retain relatively (in a recent sense) tight monetary policy, with base rates in the 3.50-3.75% range.