INSUBCONTINENT EXCLUSIVE:
(Analysis) Jerome Powell, Chairman of the U.S
Federal Reserve, recently announced that U.S
interest rates might stay high for longer, complicating global monetary policy.Made on Tuesday, this announcement predicts delays in
Treasury yields up and strengthened the 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 U.S
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 U.S
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.
