Central banks around the world chose to leave interest rates unchanged this week. Officials in the United States and Europe are assessing the risks of inflation driven by high energy prices.
The Federal Reserve and the European Central Bank kept open the possibility of raising rates at their December meetings. In the United States, the key price measure accelerated at the end of the third quarter, when the economy grew at its fastest pace in a year thanks to strong business investment and sustained consumer demand.
The ECB's decision to keep the deposit rate at 2,5% was overshadowed by the news of President Christine Lagarde's departure in February. Energy costs, as well as market, budget and political problems in France, add to the tension.
The Bank of Japan also kept policy unchanged in October but signaled a possible rate hike later this year. Among the countries that left rates unchanged are New Zealand, Thailand, Chile, Botswana, Malawi, Colombia and the Dominican Republic.
At the same time, Canada, Pakistan and Ukraine raised rates. How will these decisions affect global growth in the coming months?
The American economy showed a robust upturn in the third quarter, supported by orders for durable goods and investment in equipment. The European economy as a whole grew faster than forecast, despite a downturn in France.
These moves by central banks reflect a cautious approach amid persistent pressure on prices. Markets are now awaiting updated forecasts and decisions in December.
