Central banks worldwide ease monetary policies in October due to inflation concerns
Central banks worldwide ease monetary policies in October due to inflation concerns . (MENAFN) In October, central banks around the world eased their monetary policies in response to ongoing inflation concerns, though the extent of these efforts varied. As economies approach the end ...
América - MenaFN
(MENAFN) In October, central banks around the world eased their monetary policies in response to ongoing inflation concerns, though the extent of these efforts varied. As economies approach the end of a challenging three-year period battling inflation, central banks continue to fine-tune their policies to support economic stability.



The European Central (ECB) made a 25 basis point reduction in its key policy rates, bringing the deposit rate to 3.25 percent, the refinancing rate to 3.40 percent, and the marginal borrowing rate to 3.65 percent. This move aligned with expectations, but ECB President Christine Lagarde pointed out that economic activity in the eurozone had been weaker than anticipated, with slow corporate investments and declining housing investments contributing to the ongoing challenges.



In North America, the Bank of Canada (BoC) also eased its monetary stance by cutting its policy rate by 50 basis points to 3.75 percent, marking the fourth consecutive rate cut. The BoC noted that inflation is no longer broad-based and is expected to stay near its target level, signaling that economic conditions have improved enough to justify the rate cut. Similarly, South Korea’s Bank of Korea (BOK) lowered its policy rate by 25 basis points to 3.25 percent, its first rate cut since 2020. The BOK cited slower inflation, reduced household debt growth, and lower risks in the foreign exchange market as factors influencing the decision.



Meanwhile, the People's Bank of China (PBoC) opted to keep its main policy rate unchanged, adopting a cautious stance despite other stimulus efforts. The National Interbank Funding Center (NIFC) adjusted the one-year Loan Prime Rate (LPR) from 3.35 percent to 3.10 percent, and the five-year LPR from 3.85 percent to 3.60 percent, aiming to support economic growth. In Japan, the Bank of Japan (BoJ) maintained its short-term interest rate at 0.25 percent, forecasting continued economic growth and a 2.5 percent increase in the core Consumer Price Index (CPI) for fiscal 2024. These varied approaches reflect the diverse economic conditions and challenges faced by central banks in different regions.

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https://menafn.com/1108860110/Central-banks-worldwide-ease-monetary-policies-in-October-due-to-inflation-concerns
2024-11-07
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(MENAFN) In October, central banks around the world eased their monetary policies in response to ongoing inflation concerns, though the extent of these efforts varied. As economies approach the end ...
Central banks worldwide ease monetary policies in October due to inflation concerns