Central banks in the US, Japan, and UK decided to maintain their interest rates last week, opting for a patient approach to assess the economic and inflationary effects of tariffs.

Federal Reserve Chair Jerome Powell played down concerns about slowing growth and potential price increases resulting from President Donald Trump's trade policies. The Bank of Japan also acknowledged trade policies as a risk factor to the economic outlook. Bank of England Governor Andrew Bailey advised caution amid the turbulent global situation.

In addition to the major central banks, the Riksbank in Sweden kept its benchmark rate stable at a two-year low, signaling the end of its easing cycle. Various countries, such as Taiwan, South Africa, Indonesia, Angola, Armenia, Russia, and Paraguay, maintained their rates unchanged. Chinese banks kept their lending rates steady for a fifth consecutive month, while Switzerland, Iceland, and Morocco lowered rates.

The OECD predicts a slowdown in global growth to 3.1% in 2025 and 3% in 2026 due to trade barriers and heightened uncertainty impacting business investment and consumer spending caused by Trump's trade policies.

The US is anticipated to receive a substantial amount of copper as global markets prepare for potential tariffs. Between 100,000 to 150,000 metric tons of refined copper are expected to be shipped to the US in the near future. Fed officials decided to keep the benchmark interest rate steady amidst concerns of economic slowdown and persistent high inflation, with Chair Jerome Powell suggesting that the inflationary effects of tariffs are likely temporary.