U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
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
