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Markets

IMF Predicts Rate Cuts and Slow US Growth by 2025

2 mins mins
Key Points:
  • The IMF anticipates rate cuts and slower US growth by 2025.
  • US growth projected to decrease to 1.8%.
  • Macroeconomic shifts indicate cautious investor sentiment.

The International Monetary Fund (IMF) predicts rate cuts by the Federal Reserve and European Central Bank (ECB) in its latest report published on April 22, 2025. The report indicates a slower US growth rate projected for 2025.

This forecast signals an economic shift, with expected rate cuts possibly influencing broader market sentiment. The potential for asset repricing might lead to significant exchange rate adjustments.

IMF Projects US Growth to Decline to 1.8% by 2025

The IMF’s World Economic Outlook Report highlights expected monetary policy changes due to uncertainties. The Federal Reserve is anticipated to lower rates to 4% by the end of 2025, while the European Central Bank targets 2% by mid-2025. U.S. growth is predicted to slow, inciting concerns over liquidity and risk for cryptocurrencies. Kristalina Georgieva, Managing Director of the IMF, remarked:

Focus on US Economic Growth: Projections reflect a deceleration in growth, from a 2.7% estimate in January to 1.8% in 2025. Monetary policy changes by key central banks could lead to asset repricing, affecting both conventional and digital assets.

As of April 22, 2025, I have not issued any specific statements regarding the IMF’s latest economic projections.

Bitcoin’s $91,348 Rally Amidst Rate Cut Expectations

Did you know? In 2020–2021, similar monetary policy easing led to risk-on appetite and historic crypto market rallies, showing historical precedents for the impact of rate changes.

Bitcoin’s current price stands at $91,348.91, with a market cap of $1.81 trillion and a market dominance of 63.64%, according to CoinMarketCap. The 24-hour trading volume is $46.2 billion, representing a 12.49% change. Recent movements show a 4.75% increase over 24 hours and an 8.52% rise in a week.

bitcoin-daily-chart-476
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 20:18 UTC on April 22, 2025. Source: CoinMarketCap

According to analysts at Coincu, further interest rate adjustments might cause increased volatility in crypto due to external economic factors. Experts emphasize the role of liquidity in price movements, suggesting risk management strategies should be considered regarding potential macroeconomic impacts on digital assets.

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Avatar of Mayowa Adebajo

Mayowa Adebajo

22 April 2025, 20:21:16 GMT +0000

Mayowa is a seasoned freelance writer specializing in creating compelling, high-converting content across diverse industries.

With extensive experience working with major news outlets, personal blogs, and private clients, he brings a deep understanding of audience engagement and storytelling. His expertise spans SEO optimization, persuasive copywriting, and niche versatility, ensuring content that resonates and delivers results.

Armed with a strong command of the English language and a keen eye for detail, he crafts content that is both impactful and strategically tailored to meet client goals.

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