Key facts
- Markets see a high chance of another hike from the Reserve Bank of Australia on November 3.
- Norges Bank repeated a rate hike in September and left the door open for additional tightening.
- Traders price an 80% chance of a Fed hike in December and at least one more in 2027.
- Markets are almost fully pricing a Bank of England hike next week.
- The Reserve Bank of New Zealand governor said chances of a December hike are high.
- The European Central Bank delivered a hawkish hold, warning inflation risks were rising.
Major central banks paused their interest rate hikes this week, but signaled that further increases are likely on the horizon due to persistent inflation and geopolitical tensions. The Federal Reserve and European Central Bank both held rates steady, with the Fed awaiting more evidence on inflation and the ECB warning of rising inflation risks. Markets are anticipating hikes from the Bank of England and others in the coming weeks, with the Reserve Bank of Australia also expected to raise rates soon. The Bank of Canada increased its key rate by 25 basis points to 2.5%, while the Reserve Bank of New Zealand opted to hold its rate at 2.75% but signaled a high chance of a December hike.