European central banks to announce interest rate decisions

Today, attention in the financial world shifts to Europe as central banks prepare to announce their interest rate decisions. After the Federal Reserve recently concluded its meeting, the Bank of England (BoE), the Swiss National Bank (SNB), and the Riksbank are now in the spotlight. The BoE is expected to keep rates steady as it assesses the impact of U.S. tariffs and upcoming tax increases in the UK. This comes as UK inflation remains stubbornly above the 2% target. The BoE has been cautious, reducing borrowing costs less than its counterparts in the U.S. and Europe, contributing to slow growth in the country. Today, investors will also review UK wage data, which is anticipated to show a steady pay growth of 5.9% for the three months ending in January. Meanwhile, the Riksbank is also likely to maintain its current rates, while analysts predict the SNB will lower its main policy rate by a quarter point, maintaining it through at least 2026. U.S. President Donald Trump commented on the Fed's recent decision, suggesting that cutting rates would be beneficial as tariffs impact the economy. In response, the Fed's chair noted that initial tariff policies have led to slower growth and higher inflation in the U.S. Despite challenges, investors are optimistic about potential Fed rate cuts, boosting Asian stock markets. In Europe, futures suggest a mixed opening, with some indices seeing slight gains while others decline. Geopolitical events are also affecting markets. In the Middle East, Israel intercepted a missile from Yemen, escalating tensions with the Houthis. Trump has warned Iran about its support for these militants, contributing to rising oil prices. In related news, Ukraine's President Zelenskiy announced the possibility of reducing energy strikes in the ongoing war with Russia. He and Trump discussed collaborating to bring an end to the conflict during a phone call this week. Key events to watch today include the interest rate decisions from the BoE, SNB, and Riksbank, along with the UK wage data for January.