Overview

• The Federal Reserve has paused rate cuts as the U.S. economy remains robust, contrasting with rate reductions by central banks in Europe, Canada, India, and Mexico.
• Global economic uncertainty, including trade tensions and inflation concerns, is prompting central banks to act independently of the Fed's policies.
• The Bank of England cut rates despite stagflation fears, forecasting low growth and rising inflation, with GDP growth expectations halved to 0.75% for 2025.
• Weaker currencies in regions like the eurozone and Switzerland may offset the impact of U.S. tariffs, benefiting exporters to the U.S. market.
• The U.K. faces stagnating productivity and a challenging economic outlook, exacerbated by recent tax increases and public sector expansion.