Market Medley

 Global Economic Updates US Federal Reserve : Officials decided to keep interest rates unchanged in January. They want to see more progress in reducing inflation before making further cuts.

 On Friday, February 7, 2025, the Reserve Bank of India (RBI) announced a 25 basis points reduction in the Repo Rate, bringing it down from 6.5% to 6.25%. This marks the first rate cut since the central bank raised the policy rate by a cumulative 250 basis points between May 2022 and February 2023. The decision reflects RBI’s efforts to balance inflation control with economic growth, amidst evolving domestic and global conditions.

 Overview Just before sweeping tariffs on Mexico and Canada were set to take effect, former President Donald Trump announced a last-minute 30-day delay following bilateral discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. This sudden reversal was welcomed by markets, as the tariffs could have inflicted immediate economic shocks on North America and beyond. Given the magnitude of trade between the U.S., Canada, and Mexico, economic growth losses could have reached between 0.5% and 1.5% of GDP.