Markets are closely watching the decisions of central banks in the “interest Week”, which sees 22 central banks (whose economies account for almost 40 percent of the global economy) announce borrowing costs, before next Friday… What can be expected What are the most prominent possible paths regarding inflation and interest rates in the coming year 2025 What are the main challenges
According to a report by “Bloomberg”, this week’s decisions may clearly confirm that the momentum of monetary policy easing is uneven, as policymakers are weighing various risks that may occur next year.
At the forefront of the expected decisions comes the decision of the US Federal Reserve, next Wednesday, followed by decisions in both Japan and the United Kingdom, which are the decisions that attract investors ‘ attention in the last interest Week this year.
In the United States, the Federal Reserve is expected to cut the interest rate by a quarter of a percentage point, but concerns about possible tariffs from the Trump administration may hinder further cuts, the report says.
In the UK, the Bank of England is likely to keep interest rates unchanged on Thursday, influenced by inflationary pressures and slowing economic growth.
The Bank of Japan may postpone raising interest rates until 2025, having ended its negative interest policy this year.
The European Central Bank last week cut borrowing costs for the fourth time this year by a quarter of a percentage point to 3 percent and softened its hawkish tone.
For his part, the head of the global markets department at Cedra Markets, Joe yerq, points out that for China, yerq explains that Beijing will witness cuts in interest rates and the mandatory reserve ratio for banks in 2025, stressing that these cuts will play a big role in supporting the global economy.
He concludes by stressing that 2025 will be a year of strong interest cuts by central banks around the world, as part of their efforts to support the global economic recovery.
Donald Trump’s return to the White House next month poses a major threat to the future. Trump has vowed to impose sweeping tariffs and deport millions of Americans while cutting taxes and regulations, the newspaper reported.
Just over 60 percent of the economists surveyed, conducted in partnership with the Booth School of business at the University of Chicago, believe that Trump’s plans will have a negative impact on growth in the United States. Most of them are also preparing for higher inflation if his plans to impose sweeping tariffs and heavy duties on China come true.
In advanced economies such as the USA, when interest rate hike policies are adopted, the central banks of developing countries are forced to take the same action to avoid the flight of so-called”hot money”, investment flows that are looking for higher returns.
The world is witnessing rapid geopolitical changes, especially with the expected American practices in the new Trump administration, especially in the Middle East and Africa regions.
These events add to the uncertainty, weakening confidence and hindering the flow of investments, which makes it very difficult to predict the future of the world economy.
Geopolitical changes are moving faster than the ability of economic policies to adapt to them.
The uncertainty and mistrust that prevail in the world today play a huge role in influencing interest rate policies and the global economy in general.
The current global tensions are reminiscent of the conditions of the first and second world wars, with the aggravation of political conflicts and the growing number of proxy wars.
Major alliances, such as Russia and China in the face of the United States and its allies, contribute to inflaming the situation, with other skirmishes in areas such as the South China Sea (with economic repercussions).
The global economy is experiencing a slowdown in growth, even in the largest world economies.. Oil prices are subject to various fluctuations in light of this.
Fears of stagflation dominate the market.. This poses further challenges when formulating monetary policies.
