China's yield differentials with the U.S. have widened to a 22-year peak, driving the yuan to a one-year low amid contrasting economic policies. Despite global trends, the PBOC held rates steady, paralleling similar decisions by the ECB and Bank of England, while the Fed cut rates.

Global economic growth has hit a post-2008 low, exacerbating environmental issues and inequalities, prompting calls for a shift to innovative, inclusive, and sustainable models. This requires international cooperation, especially in technology and finance, to aid developing nations in green growth and manage demographic shifts.

The Federal Reserve's 'hawkish cut' indicates the policy rate won't fall below 4% soon, boosting the dollar and creating challenges for emerging markets reliant on dollar funding. This move has led to currency interventions and significant capital outflows, complicating the global financial landscape as U.S. Treasury yields rise.

The PCE price index rose by 2.4% annually in November, slightly below expectations, as core inflation steadied at 2.8%. Despite recent rate cuts, the Fed remains cautious about further reductions due to lingering inflationary concerns and revised expectations for 2025.

BRICS, aiming for economic independence from the West, highlights India's growing influence due to its youthful demographic and robust growth prospects. Jim O'Neill forecasts India becoming a top-three global economy soon, potentially surpassing Japan and Germany.

South Korea will relax foreign exchange regulations to boost liquidity as the won hits a 15-year low, depreciating 11% this year. New measures will promote foreign capital inflows and ease borrowing, while deferring stricter liquidity tests until June 2025.

Global economic conditions are showing signs of persistent softness, with sub-zero inflation in major economies and downward revisions in GDP growth forecasts for 2025 and 2026. Despite these trends, Brazil is tightening its monetary policy, and OPEC+ delays production increases amid weakening demand, shaping a complex economic landscape for the coming years.

The Bank of Russia unexpectedly held its key interest rate at 21% on December 20, despite forecasts for a hike to 23%, aiming to curb high inflation. With inflation at 9.5%, double its target, the central bank faces criticism from business leaders for stalling economic growth.

The Reserve Bank of India decided to keep the policy repo rate steady at 6.50%, while lowering banks' cash reserve ratio, amid slowing GDP growth and rising inflation. Governor Das stressed balancing inflation and growth, as forecasts for GDP growth have been downgraded and calls for a rate cut were debated.

The Core PCE Price Index rose by only 0.1%, below the expected 0.2%, signaling slower inflation and easing pressure on the Federal Reserve. This may impact USD value and monetary policy decisions.

Japan's core CPI rose to 2.7% in November, exceeding forecasts and increasing from October's 2.3%, driven by higher food and fuel costs. This inflation surge pressures the BOJ to consider raising rates.

Germany's tax revenues surged by 3.8% in 2024, driven by wage increases, yet corporate taxes fell amid economic woes. Economists foresee a GDP decline, prompting a snap election in February.

Japan's CPI inflation hit 2.7% in November 2024, surpassing expectations and continuing a rising trend that began in October. The BOJ hints at potential policy shifts if inflation keeps climbing, with upcoming wage negotiations seen as pivotal.

Canada faces political turbulence as Finance Minister Chrystia Freeland resigns and the U.S. threatens a 25% tariff on Canadian goods. The Conservative Party urges a snap election amid economic concerns.

The Bank of England has held interest rates steady at 4.75%, despite UK inflation rising to 2.6% in November, above its 2% target. This decision reflects caution amid economic uncertainty, with some committee members advocating for potential rate cuts if inflation stabilizes.

The yen weakened past 155 per U.S. dollar after the BOJ held interest rates at 0.25%, surprising many who anticipated a rate hike. Governor Ueda noted inflation concerns but ruled out a hike before March 2025.

El Salvador secures a $1.4 billion IMF loan, mandating changes to its Bitcoin policies by restricting public-sector use. This marks a shift from its initial Bitcoin enthusiasm, driven by the need for financial stability.

Nvidia directs major distributors to scrutinize Southeast Asian customers over suspicions of AI chip smuggling to China, defying U.S. export restrictions. This highlights challenges in enforcing tech export controls amid heightened U.S.-China tensions.

The South Korean won has plunged 3.9% against the dollar in December, marking an 11% annual loss, due to political instability and economic policy concerns. Traders fear further depreciation as capital outflows increase amid investor anxiety over leadership and trade talks with the U.S.