Our Scans · (FS.6.07) Inflation · Weekly Summary

• [New] Policymakers in the US are anticipating two rate cuts in 2025, with economic growth projected at 1.7% and inflation at 2.7%. Economic Times
• [New] While the Reserve Bank of Australia has signaled a cautious approach to interest rate adjustments, sustained deficits could complicate monetary policy by fueling demand-side inflation. Simply Wealth Group
• [New] While recognizing two-sided growth and inflation risks, the Bank of England - unlike the Fed - seems more concerned about the risk of a resurgence in inflation. Invesco
• [New] The Bank of England expects inflation to rise temporarily to 3.7% later in 2025 due to higher energy prices. The Scotsman
• [New] Inflation slowed to 2.8% in February, although the Bank of England still expects inflation to peak at around 3.7% in September 2025. Kent Online
• [New] Protection against inflation rebounds: If inflation resurges, the Bank of Canada might pause rate cuts, making today's fixed rates more attractive. Everything Mortgages
• [New] Stable or declining inflation could push the Bank of England toward lower interest rates, impacting savings and loans. FOREX GDP
• [New] While lower inflation sounds good, too low inflation might encourage the Bank of England to cut interest rates further. FOREX GDP
• [New] New York Fed President John Williams stated that downside risks to economic growth and upside risks to inflation remain strong, stressing that the Fed will not rush to cut rates. investing.com
• [New] The OECD highlighted that higher and broader increases in trade barriers would hit growth around the world and add to inflation, and that higher-than-expected inflation would prompt more restrictive monetary policy and could give rise to disruptive repricing in financial markets. Morningstar UK
• [New] Inflationary pressures remain, particularly in the services sector, with core inflation projected to stay above central bank targets in many countries, including the United States. ProgramBusiness | Where insurance industry clicks
• [New] New trade policies, including significant tariff hikes between major economies, could increase inflation and suppress global trade growth. ProgramBusiness | Where insurance industry clicks
• [New] Even though the U.S. inflation remains above the Federal Reserve's (Fed) official target, FOMC members continue to predict two 25-basis-point rate cuts by the end of the year. investing.com
• [New] 2024 saw increased attention on cost of living adjustments in light of inflation concerns and rising interest rates, which may taper slightly in 2025 as the Bank of Canada predicts reduced inflation for 2025 and has since been cutting interest rates. Fasken
• [New] The Bank of England lowered the key policy rate by 25 basis points in its February meeting, judging that domestic price pressures remained stable and that the recent pick-up in headline CPI inflation will not lead to additional second-round effects on underlying domestic inflationary pressures. European Central Bank
• [New] The cooling of labour markets across OECD members is expected to drive down nominal wage inflation, allowing headline CPI inflation to gradually converge towards central bank targets. European Central Bank
• [New] US inflation remains at a disquieting level for Federal Reserve officials, just as the Trump administration moves forward with tariffs that risk keeping price pressures elevated. financialpost
• [New] In the wake of Trump tariff threats, and inflation spiking once again in the UK, to 3%, the slow and steady approach to rate cutting makes sense. Morningstar UK
• [New] The ongoing trade war between the United States and other countries has fueled industry concerns that imposed or threatened tariffs could raise grocery prices for certain items and contribute to higher food inflation. Grocery Dive
• [New] A trade war between the US and Europe could shave half a percentage point off eurozone growth and push up inflation. RTE

Last updated: 01 April 2025