South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Thailand Inflation Remains Negative for 10th Straight Month in January 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Australia’s Economic Outlook: Inflation, Employment, and Growth Forecasts
In its latest Statement on Monetary Policy, the Reserve Bank of Australia (RBA) projected a gradual decline in inflation while adjusting forecasts for employment growth and economic expansion. Despite consumer hesitation in spending, demand in the Australian economy continues to exceed supply, though the gap is closing.
Inflation Expectations
The RBA anticipates a slight reduction in underlying inflation, with its closely monitored trimmed mean measure expected to dip from 3.5% in Q3 to 3.4% by year-end, still above its target range of 2-3%. Inflation is forecasted to ease to 2.8% by late 2025 and 2.5% by the end of 2026.
“Inflationary pressures are expected to ease as demand and supply balance out, although disinflation will be gradual,” the RBA stated.
Employment Growth and Labor Market
Strong job growth is contributing to a tight labor market, with employment growth predicted to rise to 2.6% by the end of this year before decelerating to 1.4% in 2025. The jobless rate, currently 4.1%, is projected to increase slightly, reaching 4.3% by year-end and peaking at 4.5% in 2025.
Economic Growth and Interest Rates
The RBA has adjusted its economic growth forecast to a modest 1.5% for 2024, anticipating a gradual recovery to 2.25% over the longer term. Financial conditions in Australia remain comparatively less restrictive than in other advanced economies, even after rate hikes totaling 425 basis points since May 2022. The central bank expects interest rates to hold steady at 4.35% until mid-2025, with potential reductions starting in late 2025.
