For the third consecutive time, the U.S. Federal Reserve decided on Wednesday, May 7, to keep interest rates unchanged at a range between 4.25% and 4.5%, in line with expectations.
As U.S. President Donald Trump returns to office, the Federal Reserve faces mounting political pressure to reduce interest rates. However, all indicators suggest that the central bank will maintain its cautious approach, preserving its independence despite the increasingly tense political climate.
In a widely expected move, the Bank of Japan kept interest rates unchanged during its regular policy meeting on Thursday, while lowering its economic growth forecasts for fiscal years 2025 and 2026 amid rising uncertainty linked to U.S. tariffs and their potential impact on the global economy.
Philip Lane, Chief Economist at the European Central Bank ECB, emphasized the necessity of adopting a balanced approach to interest rates, urging policymakers to avoid excessive caution when considering rate hikes or cuts and to seek a middle path between acting too quickly and moving too slowly.
Structural reforms are needed to raise medium-term growth and address fiscal challenges population aging.
The bank reported pre-tax profit of 1.4bn in the third quarter, up 40 per cent a year earlier on a constant currency basis
ECB Delivers Big 75bps Rate Hike
CNB keeps interest rates unchanged
Policymakers increase base rate by 0.5 percentage points, the sixth rise in a row as the cost of living soars
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