Highligts

  • In light of rising economic headwinds from uncertainty around global trade, the Fed kept a wait-and-see approach.
     
  • Rising uncertainty amid higher US tariffs was mentioned by the BoJ as a factor to keep rates on hold in March. The BoE also left rates unchanged in March due to ambiguity over international trade and a weakening domestic economy.
     
  • The BoE also left rates unchanged in March due to ambiguity over international trade and a weakening domestic economy.

In this edition

The US Fed kept interest rates unchanged in the 4.25-4.50% range at its March policy meeting. Citing risks around elevated uncertainty from trade policies, the Fed prefers to wait and see given that the uncertainty is “remarkably high”. We think partly because of this uncertainty, the central bank slightly reduced its economic growth forecasts for this year and mentioned that US tariff policy may delay progress on slowing inflation. The Bank of England (BoE) and the Bank of Japan (BoJ) also held rates steady. The BoE still expects inflation pressures to ease but reiterated the need for a “gradual and careful approach.“ We think a global approach to quality credit and select bonds could potentially boost prospects for long-term returns.

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Key dates

30 July

Federal Reserve Interest 
Rate Decision  

 

31 July

Bank of Japan Interest
 Rate Decision  

 


 

01 Aug

US Unemployment Rate, Euro Area Inflation Rate YoY  


 

*Diversification does not guarantee a profit or protect against losses.

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