The Global Central Bank Rate Dance: A Year of Easing and Expectations

Several major central banks globally adjusted their interest rates, with most opting for cuts. The Bank of England held steady, while the Federal Reserve in the U.S. signaled future caution. Notably, Australia's and Norway's banks remained unchanged, with Japan uniquely increasing rates amid inflation control efforts.

The Bank of England concluded a significant year for central banks globally by keeping its rates steady on Thursday. This decision followed the U.S. Federal Reserve's move to ease its policy but with a cautious outlook for 2025.

This year, seven out of ten major, developed-market central banks slashed rates, with Australia and Norway as the exceptions, remaining on hold. Meanwhile, Japan stands out by increasing its rates.

The Swiss National Bank surprised with a drastic rate cut, marking historic reductions. Conversely, the Bank of Canada and the European Central Bank also took steps to reduce rates, aiming to balance national economic challenges and moderate inflation.

(With inputs from agencies.)