Central Banks Balance Cuts Amid Inflation Challenges

In October, Japan's core consumer prices rose by 2.3%, slightly surpassing expectations. In the UK, inflation increased from 1.7% to 2.3% in November, impacting the Bank of England's expected interest rate cuts. BoE Deputy Governor Dave Ramsden suggests inflation could undershoot forecasts, potentially necessitating quicker rate cuts. Meanwhile, Bank Indonesia is expected to take a cautious approach to interest rate cuts due to global uncertainties affecting rupiah stability. In the US, Federal Reserve Governor Lisa Cook indicates that more rate cuts are likely as inflation eases, though the pace may be slower due to potential pressures from President-elect Donald Trump's policies. Overall, central banks are cautiously balancing rate cuts with economic stability amidst inflationary pressures.