The Bank of Korea (BOK) has maintained its key interest rate at 3.5 percent for the fifth consecutive time, as it considers the slowdown in growth and moderating inflation, while predicting that inflation may rise above its target level later this year.
Turkey's central bank raises interest rates to 25% in an effort to combat inflation, surpassing economist expectations and leading to a rally of the Turkish lira.
The president of the Federal Reserve Bank of Philadelphia believes that the US central bank has already raised interest rates enough to bring inflation down to pre-pandemic levels of around 2%.
Central bankers are uncertain if they have raised interest rates enough, prompting concerns about the effectiveness of their monetary policies.
The Bank of Canada is expected to keep its key interest rate steady at 5.00% and maintain that level until at least the end of March 2024, despite rising inflation and a revival in the housing market, according to economists in a Reuters poll.
The Federal Reserve is expected to hold interest rates steady this month, but inflation could still lead to additional rate increases.
The Bank of Israel is expected to maintain its interest rate at 4.75% due to decreasing inflation and indications of modest economic growth, despite concerns about the slowdown in the hi-tech industry and reduced demand for workers; meanwhile, interest rates in Israel are influenced by expectations of lower rates in the United States and the recent drop in the shekel's value.
West Africa's Central Bank, BCEAO, will raise its main lending rate by 25 basis points to 3.25% as it anticipates and seeks to contain the impact of a military coup and regional uncertainty on the macroeconomic outlook.
The European Central Bank is expected to maintain interest rates on September 14, although nearly half of economists anticipate one more increase this year in an effort to reduce inflation.
The Federal Reserve is expected to cut interest rates by about one percentage point next year as economic growth slows and unemployment rises, according to chief economists at major North American banks.
Pakistan's central bank is expected to raise interest rates to address inflation and bolster foreign exchange reserves, following a series of rate hikes earlier this year in response to economic and political crises.
The European Central Bank is facing a dilemma on whether to raise its key interest rate to combat inflation or hold off due to economic deterioration, with investors split on the likelihood of a rate hike.
The European Central Bank has raised key interest rates by 0.25 percentage points to help bring down inflation, although the economy is expected to remain weak for a while before slowly recovering in the coming years.
The European Central Bank has raised its main interest rate for the 10th consecutive time to tackle inflation, but indicated that further hikes may be paused for now, causing the euro to fall and European stocks to rally.
Russia's Central Bank has raised interest rates to 13% as it expresses concerns about rising inflation and an overheating economy due to increased government spending on the war in Ukraine.
The Bank of England is expected to raise interest rates to 5.5%, potentially marking the end of its tightening cycle, as concerns about a cooling economy grow among policymakers.
The Federal Reserve is expected to hold off on raising interest rates, but consumers are still feeling the impact of previous hikes, with credit card rates topping 20%, mortgage rates above 7%, and auto loan rates exceeding 7%.
The Federal Reserve is expected to hold its benchmark lending rate steady while waiting for more data on the impact of previous rate hikes on the US economy, but there is still a possibility of another rate increase in the future.
Turkey's central bank raises interest rates to 30% as it seeks to combat high inflation and stabilize the weakening lira.
Central banks, including the US Federal Reserve, European Central Bank, and Bank of England, have pledged to maintain higher interest rates for an extended period to combat inflation and achieve global economic stability, despite concerns about the strength of the Chinese economy and geopolitical tensions.
Central banks around the world may have reached the peak of interest rate hikes in their effort to control inflation, as data suggests that major economies have turned a corner on price rises and core inflation is declining in the US, UK, and EU. However, central banks remain cautious and warn that rates may need to remain high for a longer duration, and that oil price rallies could lead to another spike in inflation. Overall, economists believe that the global monetary policy tightening cycle is nearing its end, with many central banks expected to cut interest rates in the coming year.
The Bank of Ghana is expected to conclude its tightening cycle as falling inflation signals a stable economy, according to a Reuters poll, with interest rates likely to be cut in the coming months.
Minneapolis Federal Reserve President Neel Kashkari believes there is a 50% chance that interest rates will need to significantly increase in order to combat inflation, citing a strong case for the U.S. economy heading towards a "high-pressure equilibrium."
The Federal Reserve remains committed to raising interest rates despite the rise in U.S. bond yields, as the U.S. economy shows signs of re-accelerating in the third quarter and inflation worries ease.
Indonesia's central bank, Bank Indonesia, is expected to maintain stability in currency and bond markets by holding interest rates steady at its upcoming policy meeting as it aims to bolster confidence in the country's economy and prevent further market turmoil.
Around 5% of global banks are at risk if central bank interest rates remain high, while 30% would be vulnerable to low growth and high inflation, according to the International Monetary Fund (IMF)'s Global Financial Stability Report. The IMF emphasized the need for stronger bank supervision and increased capital levels to enhance resilience.
World Bank President Ajay Banga predicts that interest rates will remain high for a longer period, impacting investments globally and creating challenges for central banks dealing with ongoing wars and trade flow disruptions.
Argentina's central bank raised the country's benchmark interest rate to 133% from 118% due to worse-than-expected inflation data, exacerbating the economic crisis ahead of the upcoming presidential elections.
Argentina's central bank has raised the benchmark interest rate to 133% as inflation data shows a higher-than-expected increase, exacerbating the country's economic crisis ahead of the upcoming presidential elections.
Ghana's sovereign dollar bonds experienced a sharp decline after the government proposed debt rework scenarios that would involve a 30% to 40% haircut on the principal, disappointing investors. However, the bonds later recovered slightly, though they remained down on the dollar; Ghana is in talks with creditors to restructure its debts during its severe economic crisis, aiming for a coupon of no more than 5% and a final maturity of not more than 20 years on new bonds.
The Bank of Canada is expected to hold interest rates at 5.00% for at least six months, with economists predicting a reduction in the second quarter of 2024 due to a slowing economy and signs of strain from previous rate hikes.