Central Bank Holds Rates Steady, Signals Patience on Future Moves

The central bank held its benchmark interest rate steady for the third consecutive meeting, signaling a patient approach as it balances lingering inflation pressures against signs of cooling economic growth.

The Decision

• Benchmark rate unchanged at 4.25 percent
• Statement removed language about "further tightening"
• Two policymakers dissented in favor of an immediate cut

Market Reaction

Bond yields fell modestly and equity futures ticked higher following the announcement, as markets interpreted the statement as opening the door to easing later this year.

Economists broadly expect the first rate cut to arrive within two quarters if inflation continues its downward trajectory.

Housing market participants reacted positively, with mortgage rates dipping slightly and homebuilder stocks rising on expectations of lower borrowing costs ahead.