BOJ Minutes Signal More Rate Hikes as Inflation Risks Grow 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Japan Economy Minister Downplays Inflation Risks Despite BOJ Warning 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
The U.S. Federal Reserve has announced a 25-basis-point (bps) cut in its main interest rate, bringing it down to a target range of 4.50% to 4.75%. All Fed officials unanimously supported this decision, showing that they all agreed with this move based on the current economic situation.
Comparison with Previous Rate Cuts
On November 7, 2024, the Federal Reserve cut its interest rate by 25 basis points (bps), a smaller reduction than the 50 bps cut in September 2024. This indicates a cautious approach as the Fed adjusts to evolving economic conditions and recent political changes. Prior to these cuts, rates peaked at 5.25% in mid-2023 after several increases.
Economic Context
The September cut represented the first reduction after a four-year hiatus from rate cuts, with current inflation at around 2.4%. Although inflation pressures have eased, they remain a concern. The labor market is also showing signs of cooling, with slower job growth and slightly rising unemployment rates influencing the Fed's recent decision.
Future Projections
The Fed has indicated that while additional cuts may occur, they will depend on ongoing economic data, particularly regarding inflation and employment. Future cuts are expected in December 2024 and possibly into 2025, but with increased uncertainty due to possible inflationary pressures from proposed policies under President-elect Donald Trump. This gradual approach reflects the Fed’s vigilance about potential inflation risks.
