February 22, 2024
United States:
Fed Minutes Show Most Officials Flagged Risks of Cutting Rates Too Quickly
Minutes from the Federal Reserve’s latest gathering show most officials remained more worried about the risk of cutting interest rates too soon than keeping them high for too long and damaging the economy.
A summary of the Jan. 30-31 Federal Open Market Committee meeting released Wednesday showed policymakers want to see more evidence inflation is firmly on a path to their 2% target before lowering interest rates, with some raising concerns that progress could stall. Together, the minutes reinforced expectations that borrowing costs will remain high for the foreseeable future.
Europe:
ECB Officials Saw Cutting Interest Rates Too Soon as Bigger Risk
European Central Bank officials deemed a premature reduction in interest rates a bigger danger than cutting too late, an account of their last policy meeting showed.
There was broad consensus among policymakers convening in Frankfurt that it was too early to discuss lowering borrowing costs, according to the account of the Jan. 24-25 gathering, which was published Thursday.
Asia:
India’s Rate Panel Remains Vigilant on Inflation, Minutes Show
India’s rate setters gave no signs of lowering interest rates just yet as repeated food price shocks risk hurting its effort to lower inflation durably, the minutes of the monetary policy meeting showed Thursday.
The Reserve Bank of India’s monetary policy committee voted five-to-one to pause for the sixth straight review and retained its stance on “withdrawal of accommodation,” suggesting it’s in no hurry to cut interest rates until inflation eases sustainably.
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