Central banks take a breather, though more hikes are to come

Major central banks paused rate hikes this week, but policymakers signaled they’re not done. The Federal Reserve and the European Central Bank held policy rates steady while citing inflation still running above target. In the euro area, attention is also on President Christine Lagarde, who announced she will step down early. The Bank of Japan is expected to stay on hold later this week, yet next week’s calendar includes more decisions, starting with the Bank of England’s first hike of 2026. G10 policy-rate levels vary, with markets watching Australia (Nov. 3) and Norway ahead of tightening.