$BTC

The Federal Reserve Keeps Interest Rates Unchanged: Markets Await the Next Move

The U.S. Federal Reserve decided, in its meeting held on May 7, 2025, to maintain the main interest rate within the current range of 4.25% to 4.5%, for the third consecutive time this year. This decision comes as part of a 'wait-and-see' strategy to assess the impact of previous monetary policies on inflation and economic growth.

Following the decision, a number of Gulf central banks, led by the Saudi Arabian Monetary Authority (SAMA), announced the maintenance of local interest rates unchanged, in line with the Fed's policy. The repo rate in Saudi Arabia reached 5%, while the reverse repo rate remained at 4.5%.

Markets are currently focused on the Fed's next meeting in June, with increasing expectations that the summer may witness the first steps towards a 25 basis point rate cut. Amid this anticipation, the U.S. dollar maintained its strength, while gold prices experienced limited movements.

These developments reflect the ongoing cautious stance in global monetary policy, amidst attempts to balance between curbing inflation and supporting economic growth.