Core Viewpoint - The Norwegian central bank indicates economic uncertainty but suggests that if the economy develops in line with current forecasts, the policy interest rate will be further lowered during 2025 [1] Group 1 - The economic outlook is described as uncertain, highlighting potential volatility in future economic conditions [1] - The central bank's current assessment implies a cautious approach to monetary policy, with a focus on adapting to economic developments [1] - The forecasted reduction in the policy interest rate signals a potential easing of monetary policy in response to economic conditions [1]

Core Viewpoint - The Bank of Japan may continue to adjust its policy interest rates while cautiously assessing whether core inflation can stabilize around 2% [1] Group 1 - The Bank of Japan is considering further adjustments to its monetary policy [1] - There is a focus on evaluating core inflation trends and their potential stability [1] - The target for core inflation is set at approximately 2% [1]

Core Viewpoint - The recent adjustment of deposit rates by major state-owned banks, which has a larger decline than the Loan Prime Rate (LPR), indicates a strategic move to alleviate internal pressures and prepare for potential economic fluctuations [1][5][10]. Summary by Sections Deposit Rate Adjustments - On May 20, 2025, major state-owned banks lowered various deposit rates, with the 1-year and 5-year fixed deposit rates reduced by 15 and 25 basis points respectively, while the LPR was only reduced by 10 basis points [2]. - The cumulative reduction in deposit rates since September 2022 has been greater than that of the LPR, with the 1-year and 5-year fixed deposit rates down by 80 and 145 basis points respectively, compared to the LPR's decline of 70 and 110 basis points [10]. Economic Context - The adjustments in deposit rates are influenced by external factors such as the easing of exchange rate constraints and progress in US-China trade negotiations, which have led to a stronger RMB [5]. - Internally, the need to balance net interest margins and the pressure on banks due to declining profitability, with the net interest margin dropping to a historical low of 1.33% in Q1 2025, has prompted these rate cuts [7]. Future Implications - The larger reduction in deposit rates compared to the LPR creates room for potential further rate cuts, which may be necessary to address economic volatility and insufficient demand, particularly in investment [10]. - The current economic environment, characterized by fluctuating tariffs and their impact on corporate investment and local finances, necessitates a proactive approach to monetary policy [10].

Core Viewpoint - The Federal Reserve, represented by Daly, indicates that there is ample time to patiently wait before making adjustments to policy interest rates, suggesting a gradual approach to any changes [1] Group 1 - The Federal Reserve has the capacity to gradually adjust policy interest rates [1] - There is currently sufficient time for the Federal Reserve to remain patient regarding interest rate changes [1]