403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Global economy faces trade wars, sluggish growth in 2025
(MENAFN) In 2025, the global economy is expected to face challenges including trade wars, slow growth, and persistent geopolitical risks, following a year characterized by monetary easing and a decline in inflation.
In response to rising inflation, many countries that had previously implemented monetary easing measures raised their policy rates significantly in the latter half of the year.
The US Federal Reserve reduced its policy rate by 25 basis points in December, marking a total of 100 basis points in cuts for the year. This brought the US policy rate to a range of 4.25 percent to 4.5 percent.
The European Central Bank (ECB) also concluded the year with four rate cuts, the latest being a 25-basis-point reduction in December. This brought its deposit rate to 3 percent, with its refinancing and marginal lending facility rates now at 3.15 percent and 3.40 percent, respectively.
The Bank of England (BoE) implemented its first rate cut since March 2020, reducing rates by 25 basis points in August and another 25 basis points in December. The total cut for the year was 50 basis points, bringing the rate to 4.75 percent.
Despite the rate cuts, weak economic growth in numerous countries, the threat of escalating trade wars, and ongoing geopolitical tensions continue to exert pressure on the global economy, potentially hindering recovery and stability in the year ahead.
In response to rising inflation, many countries that had previously implemented monetary easing measures raised their policy rates significantly in the latter half of the year.
The US Federal Reserve reduced its policy rate by 25 basis points in December, marking a total of 100 basis points in cuts for the year. This brought the US policy rate to a range of 4.25 percent to 4.5 percent.
The European Central Bank (ECB) also concluded the year with four rate cuts, the latest being a 25-basis-point reduction in December. This brought its deposit rate to 3 percent, with its refinancing and marginal lending facility rates now at 3.15 percent and 3.40 percent, respectively.
The Bank of England (BoE) implemented its first rate cut since March 2020, reducing rates by 25 basis points in August and another 25 basis points in December. The total cut for the year was 50 basis points, bringing the rate to 4.75 percent.
Despite the rate cuts, weak economic growth in numerous countries, the threat of escalating trade wars, and ongoing geopolitical tensions continue to exert pressure on the global economy, potentially hindering recovery and stability in the year ahead.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
More Story
Comments
No comment