ECB’s Vujcic has announced that the tightening cycle has come to an end and the ECB will maintain steady rates until they reach their 2% inflation target. Retail sales in Australia have exceeded expectations. ECB’s Kazimir has stated that the central bank may wait for a few quarters before making any further policy moves. Rate cuts in the first half of 2024 are unlikely. ECB’s Simkus acknowledges remaining risks but believes the current level of restriction is sufficient. BoC Governor Macklem states that the current monetary policy is effectively cooling the economy, but if inflationary pressures persist, rates may be raised further. Japanese unemployment rate is in line with expectations. However, industrial production and retail sales in Japan have missed expectations. Chinese PMIs have also fallen below expectations, with the manufacturing sector contracting. The Bank of Japan has decided to keep interest rates unchanged but has made the 1% reference cap more flexible. BoJ has also increased inflation and GDP forecasts. Eurozone CPI and GDP for Q3 have missed expectations. ECB’s Visco acknowledged positive developments in inflation and emphasized the need to avoid excessive tightening of monetary and credit conditions. Canadian GDP for August remains flat. The US Employment Cost Index for Q3 has exceeded expectations. ECB’s Stournaras has expressed the need for a rate cut if inflation falls below the 3% threshold. However, ECB’s Kazaks remains cautious of inflation risks and believes rate cuts are not necessary at this time. ECB’s Villeroy reaffirms the “wait and see” stance and highlights that France has passed the inflation peak. US consumer confidence for October has beaten expectations.
