By Naomi Rovnick and Alun John
LONDON (Reuters) -The pace of central bank rate cuts is slowing as early movers near the end of their easing cycles while sticky inflation keeps others cautious.
Politics both domestic and international is another complication for central bankers, particularly in the United States, where President Donald Trump continues to muse publicly about firing Federal Reserve chair Jerome Powell.
Here’s where 10 big central banks stand on the monetary policy path.
1/ SWITZERLAND
Bets that the Swiss National Bank will use negative interest rates to tackle the seemingly unstoppable rise of the safe haven franc have faded after it kept benchmark borrowing costs on hold at 0% in June.
Traders have since put 75% odds on another pause in September and speculate the SNB has started intervening to weaken the franc.
2/ CANADA
The Bank of Canada is widely expected to hold steady for now as U.S. tariff tensions contribute to a baffling economic outlook, with growth contracting as inflation rises and trade war disruptions to consumer behaviour muddle the outlook further.
Money markets expect that the formerly dovish central bank, which implemented 225 basis points (bps) of cuts in the nine months to April, will keep rates at 2.75% on July 30.
3/ SWEDEN
Sweden’s central bank cut its key rate to 2% from 2.25% last month, and minutes from that meeting said policy could be eased again this year if growth disappoints and inflation remains tame.
The Riksbank has been one of the more aggressive central banks, with 200 bps of cuts since May 2024.
4/ NEW ZEALAND
The Reserve Bank of New Zealand held rates steady earlier this month but said it expected to loosen monetary policy if price pressures continued to ease as forecast.
The RBNZ has cut rates by 225 bps already this cycle.
5/ EURO ZONE
The European Central Bank left interest rates unchanged on Thursday after cutting eight times in a year, biding its time while Brussels and Washington negotiate over trade.
Its main policy rate is currently at 2% down from 4% a year ago, and inflation is back at the ECB’s 2% goal.
Markets see around an 80% chance of a final 25 bp cut by year end but that depends on whether policymakers fear inflation might fall too far below target.
That in turn depends on a trade deal and whether the euro continues to appreciate.
6/ UNITED STATES
The Fed meets next week, with markets all but certain it will remain on hold despite heavy pressure from Trump to make significant rate cuts.
Trump appeared close to trying to fire Powell last week, but backed off with a nod to the market disruption that would likely follow.
