Policymakers Weigh Interest Rate Cuts Globally

Federal Reserve Chair Jerome Powell expressed a cautious approach to interest rate cuts, suggesting the economy is stronger than previously thought, which aligns with other Fed officials' sentiments ahead of the upcoming meeting. Meanwhile, the Reserve Bank of India's Monetary Policy Committee is likely to focus more on addressing faltering economic growth than on inflation, with calls for rate cuts from government officials amid disappointing GDP figures. In Australia, ANZ has revised its forecast for the Reserve Bank of Australia's interest rate cuts, pushing the first cut to May 2025 due to strong employment data and stable business conditions. Additionally, Westpac's chief economist warns that the Reserve Bank of New Zealand may overly lower rates, potentially necessitating increases as early as 2026. As central banks navigate complex economic landscapes, the interplay between growth and inflation remains a critical focus. Overall, central banks globally are balancing the need for growth support against persistent inflationary pressures.