The European Central Bank paused its rate cutting cycle for the fifth consecutive time, with eurozone inflation seen as under control despite downside risks.

Inflation now below target, but ECB unlikely to lower interest rates on Feb. 5

Falling interest rates could support a housing market recovery.

Most economists expect the European Central Bank to stay on hold as inflation seems under control.

First monetary policy meeting of the year comes after an uptick in UK inflation at the end of 2025.

Inflation is expected to stand at 2.0% in January, in line with the ECB’s target, making it unlikely interest rates will change at the Bank’s Feb. 5 meeting.

Warsh has criticized Powell and advocated for lower interest rates, but analysts are comfortable with his nomination.

With the US economy remaining strong despite jobs weakness, the Fed can take its time.

With UK inflation set to ease and growth slowing, fund managers argue markets are underestimating the scale of potential BoE rate cuts.

Central bankers are likely to hold interest rates steady, but Wall Street is focused on life after Powell.