Bloomberg Daybreak: Europe Edition Daybreak Weekend: Fed Meeting, BOE Decision, BOJ Policy
Jun 13, 2025
Paul Jackson, Asia Economy Editor for Bloomberg News, shares insights from Tokyo on key monetary policies affecting global markets. He dives into the Bank of Japan's cautious approach to interest rates amidst rising inflation and explores significant trade tariff implications, especially for the automotive industry. The discussion also highlights the broader impacts of upcoming central bank decisions in the U.S. and U.K., emphasizing the delicate balance between stimulating growth and controlling inflation.
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Fed's Steady Rate Outlook
- The Federal Reserve expects to keep interest rates steady through mid-year, with a possible change in September.
- Inflation is under control now, but tariffs remain a wild card affecting future decisions.
Challenges in US Home Building
- Home builders use aggressive incentives like mortgage rate buy-downs to boost sales amid high interest rates.
- Demand is softening, and inventory remains high, causing builders to be cautious about new projects.
Bank of England's Rate Dilemma
- The Bank of England is cautious about cutting rates amid mixed UK economic signals and sticky inflation.
- Vote split likely favors holding rates now, with cuts expected later if labor market cooling continues.