Latest Finance-Economy News
Federal Reserve and Central Banks Set to Announce Interest Rate Decisions
The US Federal Reserve is expected to announce its interest rate decision at 3.75% with a possible hike to 4.00% amid economic uncertainty. Other central banks such as the Reserve Bank of Australia and Bank of Canada will also release key rate decisions this week, impacting global markets.
China’s Economy Outlook Revised Upwards by Global Institutions
China's 2025 GDP growth forecast has been upgraded to 5% by institutions such as Goldman Sachs and the OECD, reflecting robust economic fundamentals despite geopolitical tensions. China's export growth is expected to accelerate to 5-6% annually, supporting global trade.
US Inflation Cooling but Remaining Above Fed Target
The US Personal Consumption Expenditures (PCE) inflation rose 0.3% month-over-month and remains at 2.8% year-over-year, slightly above the Federal Reserve's 2% target, signaling ongoing inflationary pressures in the economy.
US Job Market Shows Signs of Softening in November
ADP data reveals the US private sector shed 32,000 jobs in November, led by small businesses, indicating cautious consumer spending, though consumer sentiment improved slightly in early December.
Australia’s Economy Shows Moderate GDP Growth in Q3 2025
Australia reported 0.4% quarter-over-quarter GDP growth, driven by solid private investment and household spending. However, net trade and inventories contributed negatively, with household saving rates rising to 6.4%.
Eurozone Inflation Slightly Increases, Supporting ECB’s Steady Policy Stance
Euro-area consumer prices rose by 2.2% year-over-year in November, up from 2.1% in October, underlining persistent inflation that justifies the European Central Bank's cautious approach to interest rates.
South Africa and Chile Show Continued Economic Expansion
South Africa's economy expanded for a fourth consecutive quarter, its longest growth streak since 2021. Similarly, Chile's economic activity grew for the second straight month ahead of its presidential runoff, prompting expectations of interest rate cuts by its central bank.
Brazil’s Economic Momentum Weakens in Q3, Inflation Concerns Persist
Brazil's GDP growth slowed to 0.1% in Q3 2025, leading to speculation that the central bank will likely lower borrowing costs as cooling activity attempts to control inflation.
Key Global Economic Events This Week Include US Job Openings and Bond Auctions
Critical events expected include US Job Openings data favoring labor market insight and high-profile bond auctions in the US and UK that could influence borrowing costs and market stability.
Market Volatility Expected Amid Geopolitical Risks and Trade Uncertainties
Despite resilient economic indicators, ongoing geopolitical tensions and tariff impacts continue to inject uncertainty into global financial markets, particularly affecting trade-sensitive sectors and prompting cautious investor sentiment.