Central banks turn more cautious on rate cuts

By Yadarisa Shabong and Alun John

(Reuters) - Big developed market central banks are turning cautious after a series of interest rate cuts and as uncertainty in global economics and politics grows.

Of five central banks that met this week, only Switzerland's cut rates, though traders see further easing in the United States and Britain, while Japan remains in hiking mode.

Here's a look at where 10 big central banks currently stand:

1/ SWITZERLAND

The Swiss National Bank cut interest rates by 25 basis points (bps) to 0.25% on Thursday, leaving borrowing costs just above zero.

This was the fifth successive cut since the SNB started lowering rates from 1.75% a year ago.

Markets see no further reductions from here, notable because the SNB has been the most dovish developed market central bank. Still, policymakers have not ruled out a return to negative rates.

2/ CANADA

The Bank of Canada cut its key interest rate by 25 bps to 2.75% last week, its seventh consecutive reduction.

It plans to "proceed carefully with any further changes" given concerns about inflationary pressures and weaker growth.

Economists say the risk of a tariff-induced recession will keep the BoC in easing mode. Markets price almost two more 25 bps rate cuts by year-end.

3/ SWEDEN

Sweden's central bank left rates at 2.25% on Thursday, and said it expects to keep them at this level for now.

The Riksbank has been firmly in the dovish camp, easing its key rate from 4% to support a sluggish economy. But with inflation still above its 2% target, markets agree with policymakers that further cuts are unlikely.

4/ NEW ZEALAND

The Reserve Bank of New Zealand slashed the official cash rate by half a point to 3.75% last month, having cut rates by a total of 175 bps in seven months.

RBNZ Governor Adrian Orr, who has since resigned, had suggested further cuts of 25 bps in April and May which would leave rates in a neutral range. Market pricing is broadly aligned with that.

5/ EURO ZONE

The European Central Bank lowered rates earlier this month to 2.5%, its sixth cut since June.

The ECB, however, warned of uncertainty including the risk of rising inflation due to a trade war and more defence spending.

Policymakers see a growing chance of an easing pause in April, before rates fall again, four sources told Reuters after the March meeting.

6/ UNITED STATES

The Federal Reserve kept rates steady on Wednesday, and maintained projections for two further rate cuts this year, though warned of "unusually elevated" uncertainty.

Chair Jerome Powell said President Donald Trump's policies, including extensive import tariffs, appear to have tilted the economy toward slower growth and at least temporarily higher inflation.