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 Federal Reserve raised interest rates to their highest level in 22 years, but experts expect the market to react less dramatically than in the past.
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%.
The Federal Reserve is considering raising interest rates again in order to reduce inflation to its targeted levels, as indicated by Fed Governor Michelle W. Bowman, who stated that additional rate increases will likely be needed; however, conflicting economic indicators, such as job growth and wage growth, may complicate the decision-making process.
Central banks across major developed and emerging economies took a breather in August with lower interest rate hikes amid diverging growth outlooks and inflation risks, while some countries like Brazil and China cut rates, and others including Turkey and Russia raised rates to combat currency weakness and high inflation.
The Federal Reserve is considering whether to raise the key interest rate even higher to combat inflation, but some members, like Raphael Bostic, believe it's unnecessary and recommend keeping the rate at its current level for an extended period. Bostic also emphasizes the strength and resilience of businesses and families, and the need to maintain a restrictive stance on interest rates to achieve the 2% inflation target.
The Bank of Canada has decided to keep its key overnight interest rate at 5% due to weaker economic growth, but stated that it may raise borrowing costs if inflationary pressures persist.
Russia's central bank plans to increase foreign currency sales by 830% to help repay a $3 billion Eurobond and calm ruble volatility.
JPMorgan predicts that Turkish interest rates will increase by 10 percentage points in the next two central bank meetings due to fiscal spending plans and higher inflation.
Russian President Vladimir Putin warned that Russia's economy would suffer if inflation is not controlled, stating that the central bank had to raise interest rates to 12% due to increasing inflation, causing difficulties in forming business plans. However, he stated that there were no concerns about rouble volatility and that the government had tools to keep currency and markets under control.
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.
Russia's economy ministry has raised its 2023 inflation forecast from 5.3% to 7.5% due to the impact of the war in Ukraine, and President Putin has acknowledged that high inflation is causing difficulties for businesses.
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 implemented its 10th consecutive interest rate increase in an attempt to combat high inflation, although there are concerns that higher borrowing costs could lead to a recession; however, the increase may have a negative impact on consumer and business spending, particularly in the real estate market.
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.
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.
Sweden's central bank has raised interest rates for the eighth consecutive time to combat high inflation, as the country's economy shows signs of improvement, while Norway's central bank also opted to raise rates and signaled the likelihood of another hike in December.
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.
Double-digit interest rates and the possibility of further hikes are hitting the Russian economy hard, as the impact of higher industrial production and rising defense spending fade, leading to stagnation or decline in household consumption and investment.
At least one more interest-rate hike is possible, according to Federal Reserve officials, who suggest that borrowing costs may need to remain higher for longer in order to address inflation concerns and reach the central bank's 2% target.
The head of the European Central Bank, Christine Lagarde, stated that interest rates will remain high to combat inflation, despite acknowledging the impact it has on homeowners with variable interest rate mortgages, as upward pressure on prices persists in the eurozone.
Minneapolis Federal Reserve Bank President Neel Kashkari believes that the Fed should raise borrowing rates further and keep them high for an extended period to bring inflation back down to the target of 2% due to the unexpected strength of the US economy.
Rising interest rates, rather than inflation, are now a major concern for the US economy, as the bond market indicates that rates may stay high for an extended period of time, potentially posing significant challenges for the sustainability of government debt.
Interest rates for certificates of deposit and high-yield savings accounts have increased significantly in recent years due to the Federal Reserve's rate hikes, but it is uncertain if rates will continue to rise or if they have reached their peak.
Poland's central bank has lowered its key interest rate despite concerns that it is a political move, as the country's inflation rate drops to 8.2%; analysts speculate that the rate cut is aimed at assisting the conservative government ahead of the upcoming parliamentary elections.
Underlying US inflation is expected to rise, supporting the idea that interest rates will need to remain higher for a longer period of time, as indicated by central bankers.
The Federal Reserve officials suggested that they may not raise interest rates at the next meeting due to the surge in long-term interest rates, which has made borrowing more expensive and could help cool inflation without further action.
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