Central banks maintain rates as trade tariffs rise

Central banks in the US, Japan, and the UK have decided to keep interest rates steady. They are closely monitoring how new trade policies might affect the economy and inflation. Jerome Powell, the head of the Federal Reserve, is downplaying fears of slowing growth and rising prices due to these trade policies. The Organization for Economic Cooperation and Development (OECD) predicts that global growth will slow to 3.1% this year. Trade barriers and uncertainty are expected to hinder business investment and consumer spending. At the same time, the US is expecting a significant increase in copper imports as businesses rush to beat potential tariffs. While the US Federal Reserve held its interest rates steady for a second consecutive meeting, retail sales data showed a decline in consumer spending at the beginning of the year. In the UK, the Bank of England's officials made a cautious decision, while Euro-area inflation has also slowed, presenting challenges for the European Central Bank. In Germany, investor confidence is rising thanks to planned investments in infrastructure and military. Meanwhile, China's economy is showing some resilience, despite threats from US tariffs. However, the property market is under strain and unemployment is increasing. In Asia, South Korea is experiencing a drop in semiconductor exports to China, raising concerns about global demand. India is planning to introduce trade tariffs as part of a global movement toward steel protectionism. Turkey's market faced a downturn following the detention of a prominent political rival, which raised fears about the stability of recent economic policies. The situation remains tense as countries adjust to the ongoing trade tensions initiated by the US.