29th January 2026
The Fed holds interest rates to 3.50-3.75%.
Isaac Stell, Investment Manager at Wealth Club said, ""As widely expected, the Federal Reserve has held interest rates at 3.50-3.75%, putting the brakes on its easing cycle following three consecutive cuts that rounded out 2025.
In this latest and perhaps most politically charged decision, the Fed has held its ground despite increasingly forceful attempts by the White House to influence monetary policy. It is widely known that the President wants and expects lower rates, a stance made clear through persistent commentary throughout 2025. Any hope within the Fed that 2026 might bring calmer waters was dispelled when the administration escalated matters with subpoenas threatening criminal indictment.
With previous decision to cut rates focused firmly on a deteriorating jobs market, data signalling some stabilisation in the unemployment rate gave the Fed confidence to hold rates steady today. The decision to hold also comes as the rate of inflation, although showing some signs of softening, remains well above the central bank's 2% target. Further upsides to inflation are likely high on the Fed's radar given the implications of a declining dollar which has the effect of increasing the costs of imports.
Economic growth remains strong in the US but erratic policy making from the President will continue to throw challenges the Fed's way. Holding firm for now seems like the most sensible path to tread and leaves the committee well positioned to balance the risks to both employment and inflation."
UK Rate
The Bank of England will make its announcement on interest rates on 5 February 2026.
Europe
The next European Central Bank (ECB) interest rate announcement is scheduled for February 5, 2026. The Governing Council will announce its monetary policy decision, including potential changes to the deposit facility rate (currently 2.00%) and main refinancing operations rate (currently 2.15%), with a press conference following the announcement.