China's one-year loan prime rate is slashed by 10 basis points, while the five-year rate remains unchanged, leading to mixed performance in Asia-Pacific markets, with Hong Kong's Hang Seng index slipping 1.8%, mainland Chinese markets in negative territory, and other markets on the rise; meanwhile, Thailand's economy expands by 1.8% in Q2, lower than expected.
The spike in retail inflation has raised uncertainty for investors and savers, with expectations of interest rate cuts being pushed to the next fiscal year and the possibility of a rate hike. The Reserve Bank of India projects inflation to stay above 5% until the first quarter of 2024-25, and food price pressures are expected to persist. While inflation may impact stock market returns, gold and bank deposit rates are expected to remain steady.
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 Reserve Bank of Australia is expected to keep its key interest rate unchanged at 4.10% as inflation slows, but economists anticipate a final hike in the next quarter.
The Reserve Bank of Australia (RBA) kept interest rates steady at 4.10% for a third consecutive month, suggesting that the tightening cycle may be over as policymakers gain control over inflation.
The Bank of Canada has decided to keep its benchmark interest rate at 5% amid signs of a slowing economy, but has not ruled out further rate hikes if inflationary pressures persist.
Asia stock markets are softer ahead of U.S inflation data, with investors looking for signals about the Federal Reserve's next moves on interest rates.
The State Bank of Pakistan has announced that it will maintain its key policy rate at 22%, citing a continuing declining trend in inflation, improved agricultural outlook, and recent administrative and regulatory measures to address supply constraints and illegal activity. The bank hopes that inflation will subsequently decline in October.
The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, but market participants will be closely watching for any hints regarding future rate cuts.
The Federal Reserve is expected to keep interest rates steady and signal that it is done raising rates for this economic cycle, as the bond market indicates that inflation trends are moving in the right direction.
China is expected to maintain its benchmark lending rates as oil prices rise and market sentiment is affected; meanwhile, the Federal Reserve's policy meeting, Japan's trade data, and the United Nations General Assembly will also influence Asian markets.
China maintains benchmark lending rates unchanged as signs of economic stabilization and a weakening yuan lessen the need for immediate monetary easing.
The Federal Reserve is expected to keep its policy rate unchanged, but the revision of the dot plot and comments from Chairman Jerome Powell could impact the valuation of the US Dollar.
The Federal Reserve's decision to leave interest rates unchanged means that savers and individuals with surplus cash have the opportunity to earn a higher return on their money than in recent years, with online banks offering high-yield savings accounts that can provide a return above inflation.
Asian markets will be influenced by three monetary policy decisions in Asia and the Bank of England's decision on interest rates, as investors react to the Federal Reserve's policy decision and revised forecasts.
The Swiss National Bank keeps interest rates unchanged at 1.75% and hints that further tightening may be necessary to ensure price stability, while also warning of a possible global economic slowdown and addressing the risk of energy shortage in Europe.
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.
The Bank of Japan has decided to maintain its ultra-loose policy and keep interest rates unchanged due to uncertainties in domestic and global economic growth.
Asia-Pacific markets fell as the Bank of Japan kept rates unchanged and noted a "moderate recovery" in the economy, while Japan's private sector activity expanded at its slowest pace since February and the country's August inflation rate remained above the BOJ's target for the 17th straight month.
The Bank of Japan has decided to maintain ultra-low interest rates and continue supporting the economy until inflation reaches its target, indicating a slow withdrawal from its stimulus program and causing the yen to fall.
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