RBA Reassesses Pricing Behaviors and Policy Impact Amid Inflation Pressures 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
BOJ Signals Imminent Interest Rate Hike Amid Strengthening Economic Conditions 
China Vanke Hit with Fresh S&P Downgrade as Debt Concerns Intensify 
RBNZ Cuts Interest Rates Again as Inflation Cools and Recovery Remains Fragile 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
UK Raises Deposit Protection Limit to £120,000 to Strengthen Saver Confidence 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
EUR/USD Smashes 1.1660 as ADP Jobs Massacre Crushes the Dollar 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
No Emergency Fed Meeting Today
In contrast to speculation, the Federal Reserve is not holding an emergency meeting today, April 7, 2025. Instead, the Board of Governors is conducting a regularly scheduled closed meeting at 11:30 AM Eastern Time to discuss advance and discount rates imposed by Federal Reserve Banks. The meeting is according to the normal Fed schedule despite volatile markets and President Trump's tariff revelations.
Market Expects Aggressive Rate Cuts
The market is pricing in hopes for more profound monetary policy loosening, as investors are anticipating five interest-rate reductions by the end of 2025. The possibility of an emergency rate reduction in a week also has a 40% chance. This measures strong market expectation of a softer Federal Reserve stance in light of economic uncertainty.
Powell Signals Cautious Approach
Despite market expectations of sharp rate reductions, Federal Reserve Chairman Jerome Powell signaled preference to alter rates only when absolutely necessary. The next Federal Open Market Committee (FOMC) meeting, under which potential policy changes are set to be discussed, is on May 6-7. This also suggests a relatively more conservative and data-driven stance by the Fed, which damps expectations of immediate and immediate policy response.
