Business · Economy · 1 hr ago

Fed, European Central Bank and Bank of Japan expected to hold rates

Fed, European Central Bank and Bank of Japan expected to hold rates

The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates steady next week.

Their decisions will come over three days, starting with the Fed in Washington on Wednesday.

The Fed raised rates in September for the first time since 2023 and signaled another increase could come this year.

Despite elevated US inflation readings since then, economists expect officials to wait, with markets looking to the Fed’s December meeting for a possible move.

Fed Chair Kevin Warsh is expected to face questions about the December outlook at a news conference after the decision.

The European Central Bank may signal whether it could raise rates in December, while the Bank of Japan is expected to hold rates and leave a later increase possible.

These decisions matter because policymakers are weighing inflation risks, including higher energy prices and the AI boom, while trying to avoid moving too quickly.

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What people are saying

Anna WongBloomberg expert
We still expect the Fed to keep interest rates unchanged through the end of the year, and the effects of higher borrowing costs are gradually feeding through to the economy, and there is a risk that an AI-related market correction, alongside the midterm elections, could abruptly tighten financial conditions.
via Al Eqtisadiah