US interest rates unlikely to be reduced next month

Market analysts and investors now expect the US Federal Reserve to hold the key interest rate at 4.25-4.50% at its May meeting after US President Donald Trump ordered a 90-day suspension of reciprocal tariffs.

- NUNTAWUN POLKUAMDEE

Following Trump's announcement, the market believes there is a more than 80% chance that the Fed will hold rates, up from a 50% likelihood previously, said Asia Plus Securities (ASPS).

On Wednesday the US central bank released the minutes from its March 18-19 Federal Open Market Committee (FOMC) meeting that hinted it may hold rates steady if inflation remains high. However, if economic growth slows and unemployment rises, a rate cut could be considered, the brokerage said.