On March 19, against the backdrop of the Fed’s hawkish pause, major central banks worldwide maintained growing divergence in monetary policy, with most choosing to stand pat.

The Bank of Canada kept its benchmark rate at 2.25%, removing dovish language and shifting to a cautious wait‑and‑see approach. The European Central Bank and Bank of England left policy unchanged, waiting for further declines in inflation. The Reserve Bank of Australia, having raised rates consecutively, is now in a monitoring phase. The Bank of Japan said it would flexibly respond to volatility in government bond yields and prevent excessive currency swings.

Among emerging markets, Indonesia, South Korea, and others kept rates steady, prioritizing balance between currency stability and inflation. Rising energy prices due to the Middle East conflict have left central banks facing the dilemma of slowing growth and rising inflation.

Analysts argue that global monetary policy in 2026 will be characterized by caution and stability, with rate‑cut cycles widely delayed. Geopolitical conflicts and energy prices will be key variables affecting policy timing, leading to more frequent cross‑border capital flows and currency volatility.