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Central banks reduce rates. Fed may not

The Indian Reserve Bank logo is outside its headquarters in Mumbai on February 7, 2025.

Indranil Mukherje | AFP | Gety pictures

On Friday, the Indian Reserve Bank reduced the rate of 25 basis points. A day ago, England reduced interest rates by 25 basis points, after the European Central Bank reduced the same amount on January 30.

Many economies seem to settle in a low -rate environment as policy makers are looking to enhance economic growth. This is in a flagrant contradiction with the United States – it is unclear whether the American Federal Reserve will even provide price discounts in 2025, as expected in December, given the uncertainty about the economic impact of US President Donald Trump’s policies. Moreover, Trump appears to have retracted the pressure on the Federal Reserve.

Before Trump’s inauguration, the US dollar began to strengthen it and reach its highest level in more than two years, as it was measured by the US dollar index. This was already affected by companies like Amazon, which blamed the currency to restrict its expected revenues in the current quarter.

The United States may have an advantage over other economies and stock markets at the present time, but the edge can cut both directions.

What you need to know today

Reducing the first interest in India in nearly five years
the Governor Sanjay Malhotra said in a speech broadcast on Friday that the Indian Reserve Bank reduces the rate of Ribo by 25 basis points to 6.25 %. The move, which was expected by economists, was the first time in almost five years, the central bank cut prices. The Australian Reserve Bank expects real economic growth to reach 6.4 % for the current fiscal year, the lowest in the country in four years, and 6.7 % for the fiscal year 2025-26.

England bank fluctuation prices
The Bank of England reduced the standard interest rate by 25 basis points to 4.5 %, which is its first reduction in the year. All members of the Monetary Policy Committee voted for a decrease in rates, but two out of nine have voted to reduce more than 50 basis points. Central Bank Governor Andrew Billy said he expects more cuts this year. Bank of England also criticized its growth expectations to the economy in the United Kingdom in 2025 to 0.75 % of 1.5 %.

Disappointing instructions
Amazon The shares decreased by more than 4 % after granting disappointing revenues for the current quarter, noting the difficulties offered by a strong US dollar. It also announced plans to spend $ 100 billion of capital expenditures in 2025, most of which are on artificial intelligence infrastructure. The technology giant won profits and revenue expectations for the fourth quarter – and is preparing to overcome it Wal Mart As S&P 500, with the highest quarterly revenue.

SI & P 500
On Thursday, and S & P 500 0.36 % advance for the third consecutive victory, while Nasdak 0.51 % increased. the Dow Jon’s industrial averageHowever, 0.28 % lost. Japan Nikki 225 About 0.6 % decreased after the country’s family spending jumped in December unexpectedly on an annual basis, while India Elegant 50 It was around the flat line after reducing RBI interest rates.

Trump’s focus on returns, not prices
Treasury Secretary Scott Payette said in an interview on Wednesday with Fox News that the Trump administration focused on the use of fiscal policy to maintain a decrease in the treasury for 10 years and not “calling for low prices.” This represents a transformation from Trump’s original plan to “demanding low interest rates immediately.”

(Pro) IBM surpasses Nvidia
no Nafidiano apple Not Amazon -The best performance stock in Dow has been in the past three months IBMWhich rose 27 %. However, the technology company needs to do more in the field of artificial intelligence to continue performance well, according to an investment employee.

Finally …

People shop for clothes at the Calvin Klein store at a commercial center in Beijing on February 5, 2025.

Adik Perry AFP | Gety pictures

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