In January 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 21 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at 0.5 percent in January 2025. In contrast, Russia maintained a high inflation rate of 9.9 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

The benchmark interest rate in Japan was last recorded at 0.50 percent. This dataset provides - Japan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Heating and cooling equipment manufacturing in Canada has remained resilient despite slower growth in demand from major markets. At the beginning of the period, higher employment and rising disposable income fueled private spending on home improvements, with homeowners prioritizing energy-efficient HVACR systems. Despite these favorable conditions, Canadian manufacturers faced challenges from competitive imports, primarily from the US and Mexico, which intensified price-based competition. As interest rates rose to combat inflation, higher borrowing costs led to a slowdown in construction and renovation, impacting revenue. However, strong export growth to the US, a key trade partner, and sustained demand for replacement HVACR systems provided some relief. The industry now faces weaker business spending and trade barriers, such as US-imposed tariffs on imports, manufacturers are pressured to adapt strategies to maintain profitability. The tariffs may lead to increases in input costs but are expected to have a moderate impact, with businesses potentially absorbing costs or adjusting prices to remain competitive. As trade negotiations evolve, companies must remain flexible in their strategic planning. Industry revenue is forecast to rise at CAGR of 3.5% to $7.6 billion through the end of 2025, with forecast growth of 0.5% expected during the current year amid general economic uncertainty. Over the next five years, the HVACR manufacturing industry is poised for growth, driven by increased demand in residential construction. Rising disposable incomes and a trend towards energy-efficient upgrades will bolster demand for replacements. Post-pandemic emphasis on air quality and climate change concerns are expected to drive adoption of eco-friendly systems. Global trade dynamics, including a weaker Canadian dollar, may favor Canadian exports, although potential U.S.-Canada trade tensions could pose ongoing challenges. Energy efficiency regulations, such as amendments to Canada's standards and alignment with U.S. benchmarks, will enhance industry sales by prioritizing sustainability in building projects. Industry revenue is expected to increase at a CAGR of 1.7% to $8.3 billion through the end of 2030.