Global central banks signal end of rate-cutting cycles amid mixed economic signals
LONDON, Nov 6 — Central banks across major economies are approaching the end of their rate-cutting cycles, though some, including the U.S. Federal Reserve and the Bank of England, may have room for modest further easing. This week, Australia, Sweden, Norway, and the BoE all opted to keep rates unchanged, reflecting a cautious approach amid ongoing inflation and growth concerns.
Here’s a snapshot of 10 key central banks following recent policy meetings:
Switzerland
The Swiss National Bank (SNB) has maintained its key rate at 0% since June. October’s inflation unexpectedly fell to 0.1%, but analysts suggest this is insufficient to prompt a move into negative rates.
Canada
The Bank of Canada reduced rates to 2.25% last week, a more than three-year low, to counter an economic slowdown worsened by U.S. tariffs. Signals indicate that this may be the end of its easing cycle, with further cuts unlikely this year or next.
Sweden
Sweden’s Riksbank held its policy rate at 1.75%, stating it expects stability “for some time to come” unless inflation or growth outlooks change significantly.
New Zealand
The Reserve Bank of New Zealand cut rates by 50 basis points to 2.5% last month to support a fragile economy. Markets see a chance of another cut in late November, although inflation near the top of the 1-3% target range could complicate matters.
Euro Zone
The European Central Bank (ECB) held its main deposit rate at 2% for the third consecutive meeting, citing the region’s economic resilience. Traders now consider further easing unlikely before mid-2026.
United States
The Federal Reserve implemented a 25 basis point cut last week but tempered expectations for additional reductions, citing data gaps caused by the U.S. government shutdown. The move saw dissent from two policymakers, with some calling for either a deeper cut or no cut at all. Market bets for a December rate reduction have declined to roughly 60% probability.
Britain
The Bank of England left rates at 4% following a 5-4 vote, signaling a potential cut in December contingent on the government’s November 26 budget. The BoE highlighted a higher risk of weakening demand and lower chances of persistent inflation.
Australia
The Reserve Bank of Australia maintained its cash rate at 3.60%, citing robust inflation, strong consumer demand, and a recovering housing market. Markets see minimal likelihood of further cuts until 2026.
Norway
The Norges Bank held its key rate at 4%, aiming to manage inflation above target. Policymakers indicate that additional easing could occur next year, though overall cuts this cycle have been limited.
Japan
The Bank of Japan, the only central bank still in hiking mode, kept rates steady but reiterated its willingness to increase borrowing costs if economic conditions evolve as projected. The yen weakened following the announcement, prompting calls from U.S. Treasury Secretary Scott Bessent for accelerated rate hikes to stabilize the currency.
As global central banks navigate the delicate balance between supporting growth and containing inflation, investors and policymakers alike remain alert to economic signals that could influence future monetary policy decisions.
