The Federal Reserve and the European Central Bank kept interest rates unchanged while emphasizing that their campaigns to suppress inflation remain incomplete. Meanwhile, institutional shifts are emerging as Christine Lagarde plans an early exit from the ECB leadership to pursue political initiatives. Several other Group of 10 monetary authorities are preparing to resume policy tightening, with the Bank of Canada having already lifted its key rate to 2.5 per cent.
Key points
The Federal Reserve and the European Central Bank signaled that further rate hikes remain…: The Federal Reserve and the European Central Bank signaled that further rate hikes remain probable due to high energy prices and inflation.
Markets widely anticipate upcoming interest rate increases from the central banks of Engl…: Markets widely anticipate upcoming interest rate increases from the central banks of England, Australia, Sweden, and Norway.
Japanese financial markets do not fully price in another policy rate hike from the Bank o…: Japanese financial markets do not fully price in another policy rate hike from the Bank of Japan until early 2027.
Sources checked by our analysis pipeline: 1
LONDON, Oct 29 : Major central banks took a break from interest rates rises this week, but they are by no means done, with energy prices near multi-month highs and no resolution to the conflict in the Middle East in sight.
The Federal Reserve and European Central Bank both kept rates steady this week, but signaled with inflation above target they still have work to do. The ECB is also in focus as President Christine Lagarde announced she would step down early.
The Bank of Japan is likely to stay on hold later this week, but next week's central bank meetings should see hikes, including from the Bank of England, its first of 2026.
Here's where central banks in the Group of 10 developed economies stand, ranked from highest to lowest policy rate.
1/ AUSTRALIA
The Reserve Bank of Australia has hiked interest rates four times this year.
Their next policy decision is on November 3, and markets see a high chance of another hike, boosted by a hot inflation print and hawkish comments from governor Michele Bullock.
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