The Bank of Israel is expected to leave short-term interest rates unchanged at a policy meeting next week after inflation spiked in January, although analysts believe a rate cut is possible in the coming months should price pressures ease.

Consumer prices were 3.0% higher in January than a year earlier, up from 2.5% in December, complicating the picture for the BOE after it said it would cut interest rates gradually.

Inflation in the U.K. rose to a 10-month high in January, official figures showed Wednesday, an increase that will likely diminish expectations of rapid interest rate reductions from the Bank of England.

Federal Reserve officials in January agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact President Donald Trump’s tariffs would have in making that happen,

January inflation ran hot, and the odds of Fed interest rate cuts fell as Consumer Price Index total CPI inflation accelerated to 3.0%, the highest rate since June 2024.

Participants at the U.S. central bank's January 28-29 meeting "generally pointed to the upside risks to the inflation outlook," rather than risks to job market, according to the minutes from the meeting,