• Six central banks overseeing the ten most heavily traded currencies left rates unchanged in April due to inflation pressures and volatile markets caused by the Iran war.
  • Since the war began on February 28, oil prices have surged, lifting global inflation expectations through higher energy costs.
  • In the year to end-April, G10 central banks delivered no rate cuts and 50 basis points of hikes across two moves by Australia.
  • Compared to 2024 and 2025, when G10 banks delivered 850 and 800 bps in easing respectively, April marked a sharp reversal.
  • Among emerging economies, only two of 18 cut rates in April, the first time the monthly tally of cuts fell below 100 bps in a year.
  • The Philippines raised rates to keep a lid on rising inflation, while currencies in Asia flirt with or hit fresh record lows.
  • Analysts note central banks are in a better starting position than in previous crises, with positive real rates and room to act.

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