Inflation, interest rates and tariffs mean 2025 is shaping up to be an intriguing year for the global economy. One in which growth is expected to remain at a “stable yet underwhelming” 3.2%, according to the International Monetary Fund. So what might that mean for all of us?
Exactly a week before Christmas there was a welcome gift for millions of American borrowers – a third interest rate cut in a row.
However, stock markets fell sharply because the world’s most powerful central banker, US Federal Reserve chair Jerome Powell, made clear they shouldn’t expect as many further cuts in 2025 as they might have hoped for, as the battle against inflation continues.
“From here, it’s a new phase, and we’re going to be cautious about further cuts,” he said.