- Both BI and the Fed opted to reduce their policy rates by 25 bps in the September meeting, driven by growing economic weakness in both countries.
- While the Fed is prepared to continue its rate-cutting campaign, FOMC members’ views on a stable US economy suggest that further cuts may remain conditional on incoming data.
- BI appears to be gauging the effectiveness of its policy through loan growth, implying that additional rate cuts may remain on the table until loan demand substantially recovers.
