The global economic landscape is shifting significantly as we approach the end of 2024, particularly following the Federal Reserve's major interest rate cut that has mobilized central banks around the world to follow suitAs anticipation builds ahead of next week’s pivotal policies, the focus is once again fixed on the Federal ReserveInvestors and market analysts are keenly awaiting the outcomes of the last Federal Open Market Committee (FOMC) meeting of the yearThe event is set to trigger a flood of rate decisions from central banks across various countries, including Japan, the Nordic nations, and the UK, with at least 22 central banks set to announce their monetary policies by the close of business next Friday.

Economic speculation suggests that a further reduction of 25 basis points in interest rates by the Federal Reserve seems imminentHowever, the advent of 2025 brings with it uncertainties, including new government tariff policies that could influence the pace at which future cuts may happen

David Wilcox, an economist specializing in U.Seconomic research, underscored the complexities the FOMC faces in their decision-making processesHe pointed out that the commitment to undertake measures affecting inflation and economic activity complicates matters for policymakers, as they seek to determine policies at each meeting based on their understanding of economic conditions for the next couple of years.

Concurrently, the economic outlook in other parts of the world reflects a divergence in monetary policiesThe Bank of Japan is expected to hold off on interest rate adjustments until 2025, while the Bank of England is anticipated to maintain its current positions next ThursdayIn the Nordic region, varied approaches to monetary policy are evident, with the Swedish central bank likely to initiate what would be its fifth rate cut, contrasted against the Norwegian central bank which may defer any changes until the following year.

In the United States and Canada, various economic indicators are being closely monitored

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Economists forecast a modest rise of 0.2% in Personal Consumption Expenditures (PCE) for November, marking the smallest growth within three monthsInsight from this report will reveal robust growth in consumer spending and income, indicative of an underlying economic resilienceRetail sales data expected on Tuesday could mirror similar trendsAdditionally, other significant economic data releases for the U.Snext week will include industrial production, housing starts, and existing home sales statistics.

Trading analysts predict that following Wednesday’s rate decision, Federal Reserve officials may express satisfaction regarding the easing of price pressuresMeanwhile, southward in Canada, Finance Minister Chrystia Freeland is set to reveal a budgetary update, amidst speculation that she may not uphold her commitment to maintain the budget deficit at or below CAD 4.01 billionThe budget might also introduce new border security allocations in response to tariff threats

Economists additionally anticipate that Canadian inflation data for November may once again fall below the 2% targetIn a year-end address, Bank of Canada Governor Tiff Macklem is expected to reflect on the pace of interest rate cuts while considering potential trade conflicts ahead.

The Asian economic picture is also evolving as various countries report key dataThe week kicks off with crucial economic indicators from China on industrial production and retail salesConcurrently, Australia, India, and Japan are slated to release their Purchasing Managers' Index (PMI) data on Monday, which could provide important insights into regional economic trendsAdditionally, trade figures are forthcoming from Indonesia, Japan, Malaysia, and New Zealand.

A look into the monetary policies in Asia shows that both the Bank of Thailand and the Bank of Japan are expected to maintain steady rates

Recent statements from Japanese officials have suggested an ambiguous stance regarding potential rate cuts, leading the market to speculate that a rate hike may be postponedOn the other hand, Pakistan is expected to initiate a cycle of rate cuts due to a slowdown in inflation, with Indonesia and the Philippines likely to implement cuts of 25 basis points as well.

Moving to Europe, Middle East, and Africa, a consensus points towards the Bank of England remaining firm in its current interest rate decisions during its final meeting of the yearAnticipated labor reports are predicted to show a rebound in salary growth in the UK, while inflation data may reveal a surge in core inflation, bolstering the Bank's cautious stanceThe market expects similar outcomes from various central banks in the region, with Hungary likely to hold interest rates steady after preceding inflation hikes, and the Czech Republic expected to follow suit

Despite a peak in core inflation in Sweden, policymakers might still opt for a 25 basis point cut based on previous quarter growth dataNorway is projected to maintain its rate unchanged despite some rebound in core inflation, reflecting improved corporate outlooks.

Russia is in a different position, with predictions pointing to an upward adjustment in rates by as much as 200 basis points up to an unprecedented 23% as data indicates ongoing consumer price pressures exceeding the 4% targetLooking specifically at the forthcoming week, France and Germany will release their PMI data, followed by Germany’s corporate expectations index and investor confidence index from the Munich Ifo InstituteFollowing this, France’s business confidence index will be unveiled.

Additionally, Nigeria is gearing up to share its inflation figures, projected to rise from 33.9% to 34.6%. On Wednesday, President Bola Tinubu will present an annual budget speech that proposes lifting the value-added tax rates to 10% and significantly reducing the budget deficit

According to Fitch Ratings, if Nigeria meets these proposed fiscal targets, it could lead to an upgrade in its credit rating.

Israel is also set to publish its inflation data, anticipated to show a slight increase for November at 3.6%, up from October’s 3.5%. Analysts believe this uptick may influence the Israeli central bank to reconsider adjustments to interest rates in the latter half of 2025.

In Latin America, economists are forecasting that Brazil’s benchmark rate might escalate from the current 12.25% to 13.5% by the end of next year, while market projections suggest a more aggressive uptick of 200 basis points by the end of 2025. Argentina is gearing up to release its November budget balances and third-quarter economic growth data, which may indicate a significant rebound in economic growthMeanwhile, the Chilean central bank is likely to proceed with a 25 basis point cut to 5%, resting on the November consumer price report.

Mexico, which stands as Latin America’s second-largest economy, is witnessing continuous declines in core inflation for 22 consecutive months alongside slowing economic activity