INSUBCONTINENT EXCLUSIVE:
(Analysis) Jerome Powell, Chairman of the United States Federal Reserve, recently announced that United States interest rates might stay
high for longer, complicating global monetary policy.Made on Tuesday, this announcement predicts delays in anticipated rate cuts due to
dollar, challenging the global financial environment.At the International Monetary Fund (IMF) and World Bank meetings in Washington, world
leaders encountered new monetary policy challenges.The European Central Bank (ECB), Bank of England (BoE), and Reserve Bank of Australia
(RBA) face the risk of currency depreciation if they start easing cycles, which could raise import costs and hinder inflation efforts.Global
Central Banks Constrained by Steady United States Interest Rates
highlighted the dangers of prolonged high rates on Bloomberg TV.She noted that delaying rate cuts could significantly threaten global
economic stability.In Asia, financial tensions are escalating
The Japanese yen has dropped to a 33-year low, possibly forcing Bank of Japan Governor Kazuo Ueda to raise interest rates from historic
lows.In China, increasing pressures on the yuan might prevent rate reductions.Global Central Banks Constrained by Steady United States
Central Bank had to raise rates due to sustained currency weakness.With the rupiah surpassing 16,000 for the first time in four years,
further rate increases seem likely.Economists now expect fewer rate cuts in regions from Malaysia to Vietnam.Brazil faces similar challenges
soon pause its rate cuts, potentially as early as June.This situation underscores the complex links in international monetary policy and the
critical balance central banks must maintain amidst variable economic pressures.
