BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Indian Government Bonds Seen Opening Steady Ahead of RBI Policy Decision 
Indonesia Central Bank to Draft New Regulations After Expanded Economic Growth Mandate 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
The Federal Reserve FOMC left interest rates flat at 4.25%-4.5% in its January meeting, the minutes released on February 19, 2025, indicated. The committee voted on this by a unanimous vote. The Fed awaits further progress toward inflation before acting on the target range. Policy actions, for example, in the form of tariffs, are feared by the officials to be over the 2% target to leave inflation.
FOMC members were upbeat in their expectations of the economy, which they attributed to optimism about ease of government regulations and changing tax policies. Concurrently, the committee acknowledged the risk to the inflation projection, for instance, to changing trade and immigration policies. Specifically, the minutes indicated worries about President Trump's tariffs and their potential impact on inflation. Firms would pass on higher input costs due to potential tariffs to customers.
The Fed will meet again on March 18-19, 2025. Market predictions are anticipating a potential 0.25% July rate reduction.
