Federal Reserve set to hold interest rates steady in first policy meeting of 2026

The US Federal Reserve is among several central banks providing policy updates this week and next.

Notably, the Bank of Canada is widely expected to hold interest rates at the same level on Wednesday. After cutting last year, economists forecast the BoC will hold the policy rate in a neutral position at 2.25%, though they are closely watching the renegotiation of the US-Mexico-Canada Agreement (USMCA) this year for clues on the policy path for the rest of 2026.

Brazil’s Central do Brasil will also hold a monetary meeting on Wednesday, while Sweden’s Sveriges Riksbank and the South African Reserve Bank meet on Thursday.

Next week, the European Central Bank’s monetary policy committee is scheduled to convene on Thursday, Feb. 5, as is the Bank of England. The following day, investors will hear from Mexico’s central bank, the Banco de Mexico.

Many central banks, including the European Central Bank, Bank of England, and Bank of Canada, are considered to be in a cautious holding position as inflation has cooled but risks to growth remain.