RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
BOJ’s Noguchi Calls for Cautious, Gradual Interest Rate Hikes to Sustain Inflation Goals 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
Singapore Maintains Steady Monetary Outlook as Positive Output Gap Persists into 2025 
UK Raises Deposit Protection Limit to £120,000 to Strengthen Saver Confidence 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
At its March 18-19, 2025 meeting, the Federal Open Market Committee (FOMC) left the benchmark rate unchanged at a range of 4.25% to 4.5%. Keeping rates unchanged, the committee indicated the possibility of two cuts by the end of 2025 by the end of next year, in all a total reduction of half a percentage point. These anticipated cuts were based on expectations of a possible slowdown in economic growth and lower inflation.
In addition to the interest rate determination, the FOMC revised its economic projections, reducing the GDP growth projection for 2025 to 1.7% from 2.1% previously. The committee also anticipates a marginal rise in the unemployment rate, estimating it will be 4.4% by year-end. In the meantime, the projection for core inflation has been upgraded to 2.8%, reflecting continuing worries about inflation, which Fed Chairman Jerome Powell explained in part as resulting from complicating impacts of tariffs and supply chain disruptions.
As far as balance sheet management is concerned, the FOMC made public a tapering of the reduction of its holdings, reducing the ceiling on maturing Treasuries from $25 billion to $5 billion beginning April 2025, while keeping the ceiling on mortgage-backed securities at $35 billion. All in all, the FOMC approach indicates a subtle handling of the economic climate, seeking to balance continuity of growth and the necessity to contain persistent inflationary pressures
