The Reserve Bank of Australia unanimously raised the cash rate target by 25 basis points to 4.60% on 29 September, citing persistently high inflation and materialising upside risks despite signs of slowing growth. It signalled further tightening if needed, guided by incoming data and evolving risks.
The Bank of Jamaica (BOJ) unanimously raised its policy rate by 50 basis points to 6.0% from September 29, 2026, to limit second-round inflation effects amid elevated commodity and agricultural prices. Headline inflation reached 7.9% in August, above the 4.0%-6.0% target range for a third consecutive month, and is expected to return to target by mid-2027.
The Reserve Bank of Zimbabwe’s Monetary Policy Committee cut the Bank policy rate by 250 basis points to 27.5% with immediate effect, describing the move as a realignment rather than monetary easing. It also lowered the Targeted Finance Facility rate to 12.5% and capped banks’ all-inclusive on-lending rate to productive sectors at 22.5%, while leaving statutory reserve requirements unchanged.
The Bank of Mexico unanimously held the overnight interbank interest rate target at 6.50%, citing continued disinflation, expected economic slack and limited demand pressures, while maintaining an upward bias in inflation risks. Headline inflation is projected to converge to the 3% target in the fourth quarter of 2027.
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Disclaimer: Summaries are created using generative AI and may contain inaccuracies. Please refer to the original source for authoritative information.
The Reserve Bank of Australia unanimously raised the cash rate target by 25 basis points to 4.60% on 29 September, citing persistently high inflation and materialising upside risks despite signs of slowing growth. It signalled further tightening if needed, guided by incoming data and evolving risks.
The Bank of Jamaica (BOJ) unanimously raised its policy rate by 50 basis points to 6.0% from September 29, 2026, to limit second-round inflation effects amid elevated commodity and agricultural prices. Headline inflation reached 7.9% in August, above the 4.0%-6.0% target range for a third consecutive month, and is expected to return to target by mid-2027.
The Reserve Bank of Zimbabwe’s Monetary Policy Committee cut the Bank policy rate by 250 basis points to 27.5% with immediate effect, describing the move as a realignment rather than monetary easing. It also lowered the Targeted Finance Facility rate to 12.5% and capped banks’ all-inclusive on-lending rate to productive sectors at 22.5%, while leaving statutory reserve requirements unchanged.
The Bank of Mexico unanimously held the overnight interbank interest rate target at 6.50%, citing continued disinflation, expected economic slack and limited demand pressures, while maintaining an upward bias in inflation risks. Headline inflation is projected to converge to the 3% target in the fourth quarter of 2027.
The Central Bank of Lesotho’s Monetary Policy Committee raised the CBL Rate by 25 basis points to 7.00%, citing increased upside inflation risks and tighter regional and global financial conditions. The rate maintains a 25-basis-point differential to South Africa’s 7.25% policy rate, which the committee considers sufficient to sustain the exchange-rate peg and support domestic activity.
The Central Bank of Eswatini raised the discount rate by 25 basis points to 7.00%, effective 26 September 2026, with banks expected to increase the prime lending rate to 10.50%. It lowered its 2026 inflation forecast to 2.52% but cited elevated risks from Middle East tensions and a potential El Niño drought.
The Bank of Ghana’s Monetary Policy Committee (MPC) unanimously held the Monetary Policy Rate at 14.0% in September, assessing inflation and growth risks as broadly balanced. Headline inflation rose to 5.0% in August, below the 8% ±2 percentage-point target, while second-quarter real GDP grew 6.0%.
The Central Bank of Egypt’s Monetary Policy Committee held the overnight deposit, overnight lending and main-operation rates at 19.00%, 20.00% and 19.50%, respectively, and the discount rate at 19.50%, judging its restrictive stance sufficient to sustain disinflation and contain upside risks. Annual headline inflation eased to 14.5% in August and is expected to converge toward the 7% target, plus or minus 2 percentage points, in the second half of 2027.
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Disclaimer: Summaries are created using generative AI and may contain inaccuracies. Please refer to the original source for authoritative information.