Market Volatility Highlights The Power of Diversification: 19 March 2025
1 9 M A R C H 2 0 2 5 • I S S U E 6 2
Market Mood
Major central banks face tough decisions as economic conditions shift. In the U.S., the Federal Reserve is unlikely to rush into rate cuts despite a projected GDP contraction, persistent inflationary pressures, and business uncertainty due to federal budget cuts and tariffs. Similarly, the Bank of England is expected to hold rates steady after its February cut, as it balances slowing economic growth and inflation concerns. Meanwhile, Japan’s central bank is monitoring wage growth and business confidence, which has hit a four-year low, though steady output suggests a cautious approach. As global economies grapple with inflation, growth, and stability, central banks must carefully navigate their next moves.