Australia’s unemployment rate held at 4.1 percent in January, and employment increased by 17.8 thousand jobs, mainly driven by full-time positions. This data indicates that the labor market remains strong, and the economy can withstand tight monetary policy. Following this report, the likelihood of another rate hike by the Reserve Bank of Australia in the coming months increased. Officials emphasized that, despite a relative easing of pressures, inflation remains above the target, and continued contractionary policy is necessary.

The Reserve Bank of New Zealand stated that it expects the country’s economy to enter a period of strong growth while inflation simultaneously moves toward the 2 percent target. The RBNZ has kept the cash rate at 2.25 percent for now and continues an accommodative policy, as the economy still has spare capacity following the 2024 recession. Officials forecast that economic growth will reach around 2.8 percent by 2027, after which gradual rate increases may be needed. According to the bank’s governor, if this outlook materializes, a gradual rate hike may begin in late 2026. Assistant Governor Karen Silk stated that monetary policy remains accommodative and the rate-cut cycle has ended.

The US Supreme Court announced that Donald Trump did not have the authority to use the 1977 emergency law to impose broad tariffs, and these tariffs were deemed illegal. As a result, Trump’s tariffs were revoked and the government is required to refund approximately 170 billion dollars collected as import tariffs. The court’s ruling supported global equities, the US dollar fell in the short term, and gold rose due to uncertainty

The court ruling invalidates a large portion of Trump administration tariff policies in its second term, but other legal avenues to impose tariffs remain available to the White House. Trump called the ruling regrettable and stated he intends to rely on other trade laws, including Section 122 of the Trade Act of 1974, to impose tariffs of around 10% on foreign goods. However, these alternative paths are usually more time consuming and come with greater legal limitations, therefore implementing tariffs quickly and broadly, as in the past, will be more difficult.