The U.S. Federal Reserve cut rates by a quarter point, aligning with other major central banks amid economic uncertainty. The Bank of Japan and European Central Bank kept rates unchanged. The Bank of Canada cut rates to a three-year low, signaling a pause until December 2026. Sweden’s Riksbank expects inflation to be transitory, with little chance of further easing. The Reserve Bank of New Zealand cut rates by 50 bps to support the economy. The ECB held rates steady, signaling the easing cycle is nearly over. The Fed’s rate cut drew dissent, with a 70% probability of another cut in December. The Bank of England and Reserve Bank of Australia are cautious on future rate moves. Norway’s central bank eased borrowing costs but sees less need for further cuts. The Bank of Japan kept rates steady, maintaining a focus on the economy’s trajectory.

Read more at Yahoo Finance: Global central banks converge towards rate cut caution