Global Economy: A mixed bag

• Economic growth in the United States took wing, reaching an annualized 4.3% in the third quarter of calendar year 2025, the fastest pace since the third quarter of 2023, according to the initial estimate released by the Bureau of Economic Analysis
• The Bank of Japan raised its policy rate 25 basis points in December to 0.75%, its highest level since 1995
• Commodity prices remained mostly unchanged on-month overall for the second straight month in December, but metal prices rose sharply

Growth was mixed in key advanced economies in the third quarter of calendar year 2025. It accelerated in the United States (US; 4.3% vs 3.8% in the second quarter) and the Eurozone (0.3% vs 0.1%) but softened in the United Kingdom (UK; 0.1% vs 0.2%), while the Japanese economy contracted (-2.3% vs 2.1%).

Key central banks adjusted policy rates in the last month of 2025. The central banks of India, the US and the UK cut their policy rates 25 basis points (bps) each in December, while the Bank of Japan raised its policy rate 25 bps to a 30-year high of 0.75%.

The United States Federal Open Market Committee lowered the target range for the federal funds rate 25 bps for the third straight meeting, to 3.5-3.75%.