Central Bank Watch
Follow every monetary policy meeting of the major central banks (Fed, ECB, BOJ, BOE, RBA). After each meeting, we summarise the decision, the outlook for the next meeting, and the market impact. The latest article always appears at the top.
19 articles
BOJBoJ raises rate to 1.25% — highest in 31 years
The BoJ raised its policy rate by 0.25% to around 1.25% (7–2, effective Sept 24), the highest since 1995 and its second hike in three months. The two dissenters, Asada and Sato, argued for keeping rates unchanged. Governor Ueda said 'the phase of policy has changed.' Next meeting: October 29–30.
BOEBoE holds a sixth time — QT to finish by 2034
The Bank of England kept Bank Rate at 3.75% (6–3); the three dissenters voted to raise it to 4.00%. August CPI was 3.1% and is seen near 3¾% by Q4 and slightly above 4% in early 2027. The MPC also voted unanimously for a multi-year plan to run its gilt holdings to zero by end-2034. Next meeting: November 5.
FRBFed pivots to a hike — first increase since 2023
The Fed raised its policy rate by 0.25% to 3.75–4.00% in a unanimous 12–0 vote — its first hike since 2023. August CPI stayed elevated at 3.4%, and the dot plot signaled another possible hike this year. Next meeting: October 27–28.
ECBECB hikes again — countering 3.3% inflation
The ECB raised all three key rates by 0.25% (deposit rate 2.50%), its second hike since June. August HICP hit a ~3-year high of 3.3% on surging energy costs. Lagarde called the hike a 'no-brainer.' Next meeting: October 29.
RBARBA holds at 4.35% again — door to hikes stays open
The Reserve Bank of Australia held the cash rate at 4.35% (unanimous), its second straight hold after June. June-quarter CPI was 3.8% and trimmed mean 3.6% — still high — and the Board said it would hike further if upside risks materialise. Next meeting: September 28–29.
BOJBOJ holds at 1.0%. Leaves the door open to more hikes.
The BOJ held its policy rate at 1.0% on July 31 (voting 8–1), a pause after June's 31-year hike. Its Outlook Report warned inflation will run "clearly above 2%" in H2 FY2026, with the yen at a 40-year low keeping the door open to further hikes.