Monetary policy path

Global financial conditions are expected to ease

The Federal Open Market Committee of the US Federal Reserve triggered a rally in stock markets following its two-day meeting on Wednesday by indicating that it remained on course for a 75 basis points reduction in the policy interest rate this year, despite an uptick in the inflation forecast for the year. Although the Fed was not expected to reduce the policy rate in the March meeting, some market participants were concerned that the recent inflation conditions could delay or reduce the possibility of rate reduction. Indeed, the latest projections by Federal Reserve board members and Federal Reserve Bank presidents