Emerging market central banks cut rates by 625 bps in July, the largest monthly cut since at least 2022, as uncertainty over U.S. trade policies lingered. Turkey and Russia led the way with significant cuts, while developed market central banks held steady amid growth and inflation uncertainties.

In developing economies, central banks made moves based on idiosyncratic stories, with South Africa targeting a new inflation target and Turkey focusing on stabilizing the lira. Analysts note divergence in inflation levels and sensitivity to global events, while developed economies opt for a “wait and see” approach.

Developed market central banks, overseeing major currencies like USD and EUR, kept rates unchanged in July amid uncertainty over U.S. trade policies. Policy makers are anticipating more moves in September, with some central banks expected to catch up on monetary easing in 2026.

Year-to-date, G10 central banks have cut rates by 500 bps across 19 moves, with only one hike by the Bank of Japan. The impact of U.S. trade policies is being closely monitored, with more announcements and deadlines ahead shaping central banks’ decisions in the coming months.

Read more at Yahoo Finance: EM central banks plough on with easing in July as major peers linger