The US Federal Reserve, ECB and BOJ successively raised interest rates, while the BoE kept rates unchanged. With inflationary pressure persisting against a backdrop of rising energy prices, global interest rates are once again approaching a turning point. Japan raised rates to their highest level in approximately 31 years, and the outlook for monetary policy is drawing market attention.
From this week onward, the US Federal Reserve (FRB), European Central Bank (ECB) and Bank of Japan (BOJ) have all raised interest rates, creating a new turning point in global interest rate trends. The BoE has not raised rates at this point, but has indicated that further hikes are possible if inflationary pressure persists.
On 16 September, the FRB raised its policy rate by 25 basis points, bringing the target range to 3.75–4.00%. The FOMC's projections showed that 16 of its 18 members expect at least one more rate hike by the end of 2026. With inflation still below the 2% target, the FRB signaled that it intends to maintain high interest rates.
On 10 September, the ECB raised its deposit rate by 25 basis points to 2.5%, adopting a hawkish stance. This was its second rate hike of the year. In light of the trade-off between energy price pressures and growth, the ECB indicated that it would assess the timing of its next rate hike in October or December.
On 18 September, the Bank of Japan raised its policy rate from 1.0% to 1.25%, its highest level in approximately 31 years. The BOJ indicated that it would gradually proceed with the normalization of monetary policy in response to rising inflation and wage increases. The BoE kept its rate at 3.75%, but may adjust it again depending on future inflation trends.