Last week, the market was anticipating the Federal Open Market Committee’s (FOMC’s) decision on interest rates, with expectations for no changes, and indeed, the rates remained stable. However, the Fed did not offer any new insights to the markets.

In contrast, Brazil’s Central Bank raised its interest rate, while Norway’s Central Bank surprised market participants with a reduction in its benchmark rate. Both the Swiss National Bank and Sweden’s Central Bank also announced rate cuts.

On the other hand, Pakistan’s Central Bank, the State Bank of Pakistan (SBP), the Bank of Japan (BoJ), the Bank of England (BoE), and the Chilean Central Bank kept their rates steady.

In his press conference, Fed Chairman Powell indicated that the outlook for monetary policy is quite uncertain.

Although the Federal Reserve maintained its interest rate, market indicators are suggesting a potential up to 50 basis-point cut in September and in December. Discussions are already circulating about the possibility of a US rate cut as early as next month in July.

Fed member Waller has said the Federal Reserve should not delay rate cuts for too long.

Additionally, recent US data indicates that the 10% tariff levied on foreign goods has had minimal effect on consumer behaviour.

Though spending has slowed, but it is clear that the........

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