In 2025, global central banks were originally competing to cut interest rates, but suddenly at the end of the year, they all collectively hit the brakes. This rate-cutting frenzy came to an abrupt halt!

At the beginning of the year, the Reserve Bank of New Zealand was clearly the "pioneer of rate cuts," continuously lowering rates. The Federal Reserve, the European Central Bank, and the Bank of England also followed suit with easing measures, marking the largest rate cut since the financial crisis, with emerging markets even more aggressive, with total rate cuts soaring over 3000 basis points.
Who would have thought that by the end of the year, the story would take a dramatic turn? The current situation is "most pause, chaotic pace, Japan's unique stance": most central banks have pressed the pause button, and after the ECB cut rates mid-year, it kept deposit rates steady at 2.0%. Norway, Sweden, Switzerland, and others are also observing from the sidelines, unwilling to cut rates casually anymore; major central banks' pacing has completely diverged. Although the Fed still cut 25 basis points at the end of the year, bringing rates to 3.5%-3.75%, internal disagreements have erupted. In 2026, they only dare to say they might cut once more—definitely a "hawkish rate cut." The Bank of England made a small cut and is now calling for caution, while Canada and Australia, after cutting, are simply lying flat and observing; Japan's central bank is the true "lone wolf." While the world is easing liquidity, it unexpectedly raised rates by 25 basis points in December, pushing rates to 0.75%, a 30-year high! Governor Ueda Haruhiko also said that as long as the economy and inflation meet targets, further actions will follow.
This chaos among central banks is directly rewriting the investment playbook for 2026! The US dollar and British pound are likely to remain under pressure due to continued easing, while the yen and Japanese assets might become dark horses. Safe-haven assets like gold are still highly sought after. $SOL $BNB $BTC