financetom
Economy
financetom
/
Economy
/
US Fed looks set to resume rate cuts just as its peers are nearly done
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US Fed looks set to resume rate cuts just as its peers are nearly done
Sep 11, 2025 7:05 AM

LONDON (Reuters) -The U.S. Federal Reserve is an outlier among central banks in developed markets, as it looks set to resume rate cuts just as many of its peers are reaching the end of their easing cycles.

The European Central Bank (ECB) left rates unchanged on Thursday, while Japan is expected to hike rates before the year is out.

Here's where 10 major central banks stand:   

1/ SWITZERLAND

The Swiss National Bank meets on September 25. After it cut its key rate to 0% in June, investors have pondered whether a return to negative territory is likely.

Chairman Martin Schlegel said this week that the bar is high but he does rule out such a move. Inflation holding above the bottom of the SNB's 0-2% target band in August means traders do not anticipate negative rates at the current time.

2/ CANADA 

A weak economy due to U.S. tariffs, unemployment at a four-year high and lower inflation put pressure on the Bank of Canada to resume rate cuts next Wednesday.

The BoC has cut rates by 225 basis points (bps) since June 2024 but held steady since March. Markets price in roughly two more 25 bp rate cuts by January.

3/ SWEDEN 

Sweden's Riksbank has also cut rates substantially, despite sticky core inflation, but looks set to remain on hold on September 23.

Its deputy governor says that latest figures show growth and inflation moving in the right direction.  

4/ NEW ZEALAND  

Domestic and global growth headwinds could pave the way for the Reserve Bank of New Zealand to cut rates in October and probably once more by year-end, a Reuters poll of economists shows.

The RBNZ cut its policy rate by 25 bps to a three-year low of 3% last month.

5/ EURO ZONE

The ECB held its key rate at 2% on Thursday and said that it now sees inflation at 1.9% in 2027, below the 2% target.

Markets think it is possible the ECB could cut rates again, putting the chances of that happening by mid-2026 at around 50%.  

The ECB halved its the rate to 2% in the year to June but has been on hold ever since, saying the euro zone economy is in a "good place".

6/ UNITED STATES  

The Fed looks set to cut rates by 25 bps next week, having been on hold all year on concerns about the inflationary impact of tariffs.

Weakening jobs data means a rate cut is now fully baked in and some banks do not rule out a bigger 50 bp cut. In total, nearly 70 bps of cuts are priced in by year-end.

President Donald Trump has repeatedly urged the Fed to cut rates more. Investors are also watching the fate of Fed governor Lisa Cook whom Trump has moved to fire. A federal judge on Tuesday temporarily blocked this.  

7/ BRITAIN 

The Bank of England meets next Thursday and traders see no change to borrowing costs or any further easing this year.

Analysts have also pushed back BOE rate-cut expectations, citing stubborn inflation, the highest among the Group of Seven advanced economies.

The BoE cut rates by 25 bps in August, its fifth move this cycle.  

8/ AUSTRALIA 

The Reserve Bank of Australia has cut rates by 75 bps since February, though strong second-quarter GDP data means markets have pared back bets on more easing.

Traders price in one more 25 bp cut this year, and another in early 2026.  

9/ NORWAY 

Norges Bank has made just one 25 bp rate cut this cycle. Markets see one more cut this year, most likely next week, though hot underlying inflation data on Wednesday has called this into question.

10/ JAPAN

The Bank of Japan, the sole major central bank in tightening mode, has had its task complicated by Prime Minister Shigeru Ishiba's resignation.

The uncertainty leaves the central bank almost certain to hold rates next week, and makes an October hike harder, though they could still squeeze one in by year-end.

Also watch next week whether the BOJ reduces its purchases of super-long-dated government bonds.  

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Zoomed Out | Critical Minerals — why India's current strategy to become self-reliant is so vital
Zoomed Out | Critical Minerals — why India's current strategy to become self-reliant is so vital
Nov 29, 2023
Internationally, there are genuine security concerns related to the criticality in building more diverse and dependable value chains for critical minerals, about their environmental and social sustainability, and technological challenges. While, India has taken the right steps for creating an ecosystem for accelerated exploration and production of critical and new age minerals, observes FICCI Mining Committee Co-Chair Pankaj Satija.
JPMorgan has a new way to gauge its green progress
JPMorgan has a new way to gauge its green progress
Nov 15, 2023
As the largest energy banker, JPMorgan is a frequent target of criticism over Wall Street’s role in the climate crisis. At the same time, the bank is a leading US arranger of green bonds, making it vulnerable to Republicans seeking to protect the fossil fuel industry.
In fight to curb climate change, a grim report shows world is struggling to get on track
In fight to curb climate change, a grim report shows world is struggling to get on track
Nov 14, 2023
The State of Climate Action report released on Tuesday by the World Resources Institute, Climate Action Tracker, the Bezos Earth Fund and others looks at what's needed in several sectors of the global economy power, transportation, buildings, industry, finance and forestry to fit in a world that limits warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over pre-industrial times, the goal the world adopted at Paris in 2015. The globe has already warmed about 1.2 degrees Celsius (2.2 degrees Fahrenheit) since the mid-19th century.
India looking into 'freak' incidents like damage to Sikkim's Chungthang dam: RK Singh
India looking into 'freak' incidents like damage to Sikkim's Chungthang dam: RK Singh
Oct 18, 2023
Stressing on the need to have quick ramp up and ramp down energy sources for grid balancing, the minister described hydroelectric power's role as essential in the path to energy transition as wind energy is intermittent and the sun doesn't shine 24×7.
Copyright 2023-2025 - www.financetom.com All Rights Reserved