Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
Fed’s Goolsbee Warns Inflation Remains Elevated, Signals Caution on Rate Cuts 
Eurozone Recession Risks Rise as Middle East Conflict Threatens Growth, ECB Official Warns 
Bank of Korea Signals Potential Interest Rate Hikes as Inflation Remains Elevated 
RBA Rate Hike Outlook: Impact on AUD/USD and ASX 200 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
The Federal Reserve FOMC left interest rates flat at 4.25%-4.5% in its January meeting, the minutes released on February 19, 2025, indicated. The committee voted on this by a unanimous vote. The Fed awaits further progress toward inflation before acting on the target range. Policy actions, for example, in the form of tariffs, are feared by the officials to be over the 2% target to leave inflation.
FOMC members were upbeat in their expectations of the economy, which they attributed to optimism about ease of government regulations and changing tax policies. Concurrently, the committee acknowledged the risk to the inflation projection, for instance, to changing trade and immigration policies. Specifically, the minutes indicated worries about President Trump's tariffs and their potential impact on inflation. Firms would pass on higher input costs due to potential tariffs to customers.
The Fed will meet again on March 18-19, 2025. Market predictions are anticipating a potential 0.25% July rate reduction.
