Central Banks Hold Rates Amid Inflation Concerns

Central banks worldwide are navigating inflation concerns and economic growth projections. The Bank of Korea maintained its benchmark interest rate at 3.50% for the 12th consecutive meeting, considering potential rate cuts in the near future as inflation slows. Similarly, the US Federal Reserve paused further interest rate hikes but remains optimistic about economic growth and aims to address persistent inflation. In contrast, DBS Group projects the Reserve Bank of India to keep the repo rate at 6.5% for the rest of the year, citing factors like weather-related price increases. Expectations for future rate actions vary across countries, reflecting distinct economic conditions and inflationary pressures.