Central banks worldwide are lowering interest rates to boost economic growth. The RBI, Bank of England, and European Central Bank have all made recent rate cuts. In contrast, the U.S. Federal Reserve's outlook remains uncertain due to the potential economic impact of President Trump's policies.
On Friday, the Reserve Bank of India decreased its repo rate by 25 basis points, bringing it down to 6.25%. This move, anticipated by economists, marked the first time in nearly five years that the central bank has reduced rates. RBI Governor Sanjay Malhotra announced the decision in a live-streamed address. The bank projected real economic growth to reach 6.4% for the current fiscal year, the lowest in four years, and 6.7% for fiscal year 2025-26.
The RBI's decision follows similar actions taken by other major central banks. The Bank of England lowered interest rates by 25 basis points to 4.5% on Thursday, marking its first cut of the year. All nine members of the monetary policy committee voted for the reduction, though two favored a more significant 50 basis point decrease. Governor Andrew Bailey indicated that further rate cuts are anticipated this year.The European Central Bank also reduced rates by 25 basis points on January 30th. This trend of lower interest rates is evident across many economies as policymakers strive to stimulate economic growth. In contrast, the United States Federal Reserve's outlook remains uncertain. While the Fed forecast two rate cuts in 2025 back in December, the potential economic consequences of President Donald Trump's policies have created considerable uncertainty. Additionally, Trump's pressure on the Fed appears to have abated. Before his inauguration, the U.S. dollar strengthened, reaching its highest level in over two years. This has already impacted companies like Amazon, which attributed the currency's strength to a decline in expected revenue during the current quarter. While the U.S. might currently hold an advantage over other economies and stock markets, this edge could potentially work against it in the future
INTEREST RATES ECONOMIC GROWTH RESERVE BANK OF INDIA BANK OF ENGLAND EUROPEAN CENTRAL BANK FEDERAL RESERVE DONALD TRUMP
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Turkey's central bank lowers benchmark interest rate to 45%Turkey’s central bank has lowered its key interest rate by 2.5 percentage points to 45%.
Read more »
Turkey's central bank lowers benchmark interest rate to 45%Turkey’s central bank has lowered its key interest rate by 2.5 percentage points to 45%. The decision on Thursday marked the second rate cut in a row and came as inflation slowed. The bank reduced the benchmark one-week repo rate to 45% from the previous 47.5%. Last month, the bank also cut the rate by 2.5 percentage points.
Read more »
Turkey's central bank lowers benchmark interest rate to 45%Turkey’s central bank has lowered its key interest rate by 2.5 percentage points to 45%.
Read more »
Czech central bank cuts key interest rate to 3.75% as inflation stays higher than expectedThe Czech Republic’s central bank has cut its key interest rate again amid higher than expected inflation.
Read more »
PBOC Sets USD/CNY Central Rate at 7.1699, Impacting Chinese Economy and Global MarketsThe People's Bank of China (PBOC) sets the daily central rate for the US dollar against the Chinese yuan, impacting trade, investment, and financial markets both domestically and internationally.
Read more »
India Central Bank Cuts Policy Rate for First Time in Five YearsIndia's central bank has lowered its key interest rate for the first time in nearly five years, aiming to stimulate the slowing economy amidst cooling inflation. The Monetary Policy Committee reduced the repo rate by 25 basis points to 6.25%. The RBI also projected a real GDP growth of 6.7% for the fiscal year 2026 and an inflation rate of 4.2%.
Read more »