The Federal Reserve left interest rates unchanged on Wednesday, but also made it clear that it needs to see more progress on inflation before reducing borrowing costs.
Hong Kong’s monetary authority kept its key interest rate unchanged in lockstep with the Federal Reserve’s decision at its first rate meeting this year, sparing the city’s businesses and homeowners from higher borrowing costs.
The economy and the Fed have found a “fragile equilibrium,” making this “a good time to be a bond investor,” said T. Rowe Price at its Global Market Outlook.
The US inflation outlook was already steadily improving in recent months, but last week, right in the middle of the Federal Reserve’s two-day policy meeting, the dam finally broke. Monthly reports on consumer and producer prices published on the mornings of December 12 and December 13 indicated inflation over the…