• The United States Federal Reserve cut the federal funds rate by 25 basis points to 4.25%-4.50% in its latest meeting, while indicating a more cautious approach going forward in 2025
• China has indicated a more accommodative monetary policy in 2025, taking cues from continuing weakness in economic activity
• Energy prices decreased 1.2% on-month in November, owing to lower crude oil and coal prices

The United States Federal Reserve cut the federal funds rate by 25 basis points to 4.25-4.50% in its latest meeting, while indicating a more cautious approach going forward in 2025.

China has indicated a more accommodative monetary policy in 2025, taking cues from continuing weakness in economic activity.

Energy prices decreased 1.2% on-month in November, owing to lower crude oil and coal prices.

The 'last mile' of inflation continues to remain sticky across advanced western economies, with the United States, euro area and the United Kingdom all recording a pick-up in inflation in November, predominantly driven by core or services inflation remaining steady at elevated levels as labour markets continue to remain relatively tight. Furthermore, risks to inflation are significant going forward, with likely tariffs being imposed by the US on imports expected to increase domestic inflation. And in case trading partners retaliate, inflation could rise in other economies as well. All this indicates that central banks’ mission to bring inflation under target is yet not fully complete.