The logo of the Reserve Bank of India outside its head office in Mumbai on February 7, 2025.
Indranil Mukherjee | AFP | Getty images
Friday, the Reserve Bank of India reduced its repo rate by 25 base points. A day earlier, the Bank of England reduced interest rates by 25 base points, following the drop in the European Central Bank of the same amount on January 30.
Many savings seem to settle in a low rate environment, while decision -makers seek to stimulate economic growth. This contrasts strongly with the United States – it is not clear if the American federal reserve would even make its two rate drops in 2025, scheduled for December, taking into account the uncertainties on the economic impact of the policies of the American president Donald Trump . In addition, Trump seems to have fallen from the application of the pressure on the Fed.
Before the inauguration of Trump, the US dollar began to strengthen and reached its highest level in more than two years, as measured by the US dollar index. This has already affected companies such as Amazon, who blamed the currency to weigh down his expected income during the current quarter.
The United States may have an advantage on other savings and stock markets for the moment, but an advantage can cut in both directions.
What you need to know today
Reduction of the first rate of India in almost five years
THE The Reserve Bank of India reduced its repo rate by 25 basis at 6.25%, said Governor Sanjay Malhotra in a live address on Friday. This decision, which was expected by economists, was the first time in almost five years that the central bank lowered the rates. The RBI provides real economic growth at 6.4% for the current financial year, the lowest in the country in four years and 6.7% for the year 2025-26.
Banking of the Bank of England
The Bank of England reduced its reference interest rate from 25 basis points to 4.5%, its first drop of the year. All members of the monetary policy committee voted to reduce rates, but two out of nine had voted for a greater drop of 50 base points. The Governor of the Central Bank Andrew Bailey said he is expecting more cuts this year. The BOE has also halved its growth forecasts for the British economy in 2025 to 0.75% against 1.5%.
Amazon disappointing advice
Amazon Actions have dropped by more than 4% after giving disappointing income advice for the current quarter, citing difficulties posed by a strong US dollar. He also announced his intention to spend $ 100 billion in capital spending in 2025, mainly for artificial intelligence infrastructure. The technology giant has beaten the benefits and expectations of income for the fourth quarter – and is about to exceed Walmart As S&P 500 Company with the highest quarterly income.
Consecutive gains for S&P 500
Thursday, the S&P 500 advanced by 0.36% for his third day of consecutive victory, while the Nasdaq Composite climbed by 0.51%. THE Industrial average Dow JonesHowever, lost 0.28%. Japanese Nikkei 225 fell approximately 0.6% after household expenditure in December in December jumped unexpectedly on an annual basis, while India NIFTY 50 was around the flat line after RBI interest rates.
Trump focuses on yields, not on rates
The Trump administration focuses on the use of fiscal policy to maintain the yield of the treasury to 10 years and does not call for the Fed to reduce rates, “said Treasury Secretary Scott Bessent in an interview on Wednesday With Fox News. This marks a passage from Trump’s initial plan to “demand that interest rates drop immediately”.
[PRO] IBM surpasses nvidia
Not Nvidianot Apple and not Amazon – the most efficient stock of the DOW in the last three months has been IBMwhich climbed 27%. However, the technological company must do more in the field of artificial intelligence so that its actions continue to perform well, according to an investment director.
And finally …
People buy clothes in a Calvin Klein store in a shopping center in Beijing on February 5, 2025.
Adek Berry | AFP | Getty images
How Calvin Klein and Tommy Hilfiger were taken in the Trump trade war with China
China has put the owner of Calvin Klein and Tommy Hilfiger, which could force the company to close the stores and manufacture in the country, in an early repercussion of Trump’s trade in the country. While the Chinese trade ministry has started investigating Pvh September for pretending to refuse to get cotton from the Xinjiang region, which has become notorious for its Uighur detention camps, Beijing officially placed the company on its list of “unreliable entities” on Tuesday.
