The Bank of Japan held its benchmark interest rate steady and raised its inflation outlook more than expected in a sign it may be closer to a rate hike, while continuing to warn that it's still assessing the impact of President Donald Trump's tariffs. The BOJ kept the overnight call rate at 0.5% at the end of a two-day policy meeting in a unanimous vote, according to a statement Thursday. All 56 surveyed economists forecast the decision. The nine-member board boosted its median inflation projection for the current fiscal year in its quarterly economic outlook report to 2.7%...
Will the Fed signal more or less rate cuts? Higher inflation expectations and dimmer growth prospects compete with each other. All eyes are on Chair Powell. Fed may opt for patience amid panicThe Federal Reserve (Fed) is projected to leave interest rates unchanged at its March meeting. However, every word that Chair Jerome Powell says and every change to the bank's forecasts are critical for markets. In the last "dot plot" in December, the bank signaled only two rate cuts are due in 2025, half of what it previously forecasted. That hawkish twist came as the economy looked strong and...
The United States (US) Federal Reserve (Fed) will announce its monetary policy decision and release its revised Summary of Economic Projections (SEP), known as the dot plot, after its March policy meeting on Wednesday. Market participants widely anticipate the US central bank to leave policy settings unchanged for the second straight meeting, after cutting interest rates by 25 basis points (bps) to a range of 4.25%-4.5% in December. The CME FedWatch Tool shows that investors see little chance of a rate cut in March while pricing in about a 30% chance of a 25 bps cut in May. Therefore, the...
The Bank of Japan kept its key policy rate unchanged, as authorities continued to assess the potential impact on the global economy from escalating trade tensions. Governor Kazuo Ueda's board voted to keep the policy rate at 0.5% Wednesday at the end of a two-day gathering, according to its statement. The result was in line with the expectations of all 52 economists surveyed by Bloomberg. The central bank added a reference to the evolving situation regarding trade and other policies to its list of risks to the outlook. The stand-pat decision comes as domestic...
Federal Reserve Chairman Jerome Powell said Friday that the central bank can wait to see how President Donald Trump's aggressive policy actions play out before it moves again on interest rates. With markets nervous over Trump's proposals for tariffs and other issues, Powell reiterated statements he and his colleagues have made recently counseling patience on monetary policy amid the high level of uncertainty. The White House "is in the process of implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation," he said in a speech for the...
Federal Reserve officials in January agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact President Donald Trump's tariffs would have in making that happen, according to meeting minutes released Wednesday. Policymakers on the Federal Open Market Committee unanimously decided at the meeting to hold their key policy rate steady after three consecutive cuts totaling a full percentage point in 2024. In reaching the decision, members commented on the potential impacts from the new administration, including chatter...
According to a statement by the Federal Reserve (Fed), Fed Chair Jerome Powell met with United States (US) President Donald Trump on Thursday, where the head of the Fed reiterated that the Fed's...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...