Yuxin Bank: Central banks around the world will overlook short-term turbulence, expecting the Federal Reserve to cut interest rates once within the year

SmartContractAuditor · 2026-03-06T07:11:04+00:00

Chief Economist at Yu Xin Bank Investment Research Institute stated that Iran's military actions will last for several weeks. The central bank can temporarily ignore short-term fluctuations. It is expected that the Federal Reserve will cut interest rates only once, and the European Central Bank will maintain interest rates until 2027. The risk has shifted towards an earlier tightening of policies.

SmartContractAuditor

2026-03-06 07:11:04

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Odaily Planet Daily reports that Marco Valli and Daniel Vernazza, Chief Economists at Yuxin Bank Investment Research Institute, stated in a report that military actions against Iran are expected to last for several weeks. This will allow central banks around the world to temporarily ignore short-term turbulence, and tensions and disruptions in energy supplies should ease afterward. They said, “In our baseline scenario, the Federal Reserve still expects to cut interest rates only once this year, while the European Central Bank will keep rates unchanged until 2027.” The two chief economists added that this year, the risks faced by the European Central Bank have shifted from additional monetary easing to the possibility of tightening policies earlier. (Jin10)

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