Page 9 - Policy Economic Report_Feb'25
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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
Figure 2: Global & regional inflation
Source- World Bank
Most central banks shifted to monetary easing in 2024 in response to moderating inflationary pressures
and concerns over high financing costs. The European Central Bank initiated this policy shift in June,
followed by the Bank of England in July and the Federal Reserve in September. The People’s Bank of China
accelerated its easing measures, while the Bank of Japan diverged by adopting a tightening stance. By
November 2024, 67 out of 108 central banks, mostly in developed and Asian economies, had eased their
monetary policy stances. This global trend of monetary easing is expected to gradually reduce financing
costs in many economies.
Monetary Policy Trends
Most central banks shifted to monetary easing in 2024 in response to moderating inflationary pressures
and concerns over high financing costs. Key developments include:
• The European Central Bank (ECB) initiated its policy shift in June 2024, followed by the Bank of
England in July and the U.S. Federal Reserve in September.
• The People’s Bank of China accelerated its easing measures, while the Bank of Japan diverged by
adopting a tightening stance.
• By November 2024, 67 out of 108 central banks, mostly in developed and Asian economies, had
eased their monetary policy stances. This global trend of monetary easing is expected to gradually
reduce financing costs in many economies.
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