Major central banks may adjust their policy in the second half of 2025 as the Federal Reserve appears to be on track to reduce US interest rates, while the European Central Bank (ECB) could be nearing the end of its rate-cutting cycle as ‘there was one Governing Council member who did not support the decision’ to lower the main refinancing rate to 2.15% in June. Keep in mind, the Federal Open Market Committee (FOMC) kept its benchmark interest rate at 4.25% to 4.50% in June as ‘increases in tariffs this year are likely to push up prices and weigh on economic activity,’ and the central bank may stick to the sidelines ... (full story)