September Interest Rate Cuts: The Fed Joins Central Banks – Latest Updates
The global fight against inflation in the world’s economies has been ongoing for about 3 years, and there are signs that it may be coming to an end. However, central banks around the world are still making policy adjustments based on the economic conditions in their respective countries.
In September, the Federal Reserve (Fed) and the European Central Bank (ECB) both cut interest rates, while the Central Bank of Russia and the Central Bank of Brazil decided to increase interest rates. The Bank of Japan (BoJ), the Bank of England (BoE), and the Central Bank of the Republic of Turkey (CBRT) kept their policy rates constant.
The Fed’s decision to reduce the policy rate by 50 basis points to 4.75-5.00 percent marked the first rate cut in 4 years. The bank noted a slowdown in employment gains and an increase in the unemployment rate, although it remains low. The ECB made its second interest rate cut of the year, reducing various rates by 25-60 basis points. The Central Bank of Canada (BoC) also reduced its policy rate by 25 basis points to 4.25 percent.
China’s People’s Bank of China (PBoC) did not make any changes to its loan interest rates, despite expectations for monetary expansion. However, they announced measures to stimulate the economy, including reducing the reverse repo rate and mortgage rates.
The Central Bank of Russia and the Central Bank of Brazil both decided to increase interest rates in response to inflationary pressures in their economies.
In September, various other central banks around the world also made decisions regarding interest rates. Some lowered rates, such as the Swedish Central Bank, the Hungarian Central Bank, and the Czech Republic Central Bank, while others, like the Norwegian Central Bank and the Central Bank of Indonesia, kept rates constant or made slight reductions.
Overall, central banks are continuing to carefully monitor and adjust their policies in response to the ever-changing economic conditions in an effort to maintain stability and target inflation rates.
