Central Banks & Monetary Policy

On 5 November 2026 the Bank of England raised Bank Rate by 0.25 percentage points to 4%. The decision was published by the Bank of England on 5 November 2026.

On Nov 3, 2026 the People’s Bank of China said it will raise the foreign exchange reserve requirement ratio for financial institutions by 2 percentage points, to 6% from 4%, effective November 15, 2026. The announcement and effective date are reported by multiple outlets. The cited sources do not report market reactions or provide additional central bank stated objectives in the excerpts provided.

The People’s Bank of China executed a second consecutive daily overnight reverse repo operation reported at 621 billion yuan at a fixed 1.25%. This follows a 541 billion yuan overnight reverse repo at 1.25% reported the prior day, and follows the PBOC notice that overnight tenders will be conducted every business day at a fixed operating rate of 1.25%.

The ECB announced that President Christine Lagarde informed the Governing Council and the President of the European Council António Costa she will step down on 7 February 2027. The official press release sets a formal departure date and creates a defined vacancy at the European Central Bank.

The European Central Bank decided to keep its three key interest rates unchanged. The ECB said energy prices have continued to rise and are posing upside risks to the inflation outlook. This is an officially published Governing Council decision.

On October 28, 2026 the Federal Open Market Committee maintained the federal funds target range at 3-3/4 to 4 percent. The Board of Governors issued an Implementation Note that maintained the interest rate paid on reserve balances at 3.90 percent, effective October 29, 2026. These are the Fed's official policy and operational rate announcements relevant to short-term funding markets.

U.S. Impact: Elevated

On 26 Oct 2026 the ECB published its Q3 2026 SAFE survey showing a net 46% of euro‑area firms reported increases in bank loan interest rates, up from net 42% in Q2 2026. This is a direct survey observation recorded by the ECB and indicates noticeably higher borrowing costs for firms. The result may contribute to weaker corporate investment if sustained and is relevant for near‑term ECB policy and market monitoring.

Pan Gongsheng was quoted saying the interbank overnight repo has effectively become the PBOC’s target rate. In BIS‑posted speech text he said the PBOC will “study switching the predominant OMOs from 7 days to overnight” so the overnight repo would serve as the primary policy rate. Separately, the PBOC will run overnight reverse‑repo operations every day from 21 October to 2 November, with reports citing a daily maximum of 1 trillion yuan.

On Oct 19 state media (reported via Reuters) said the People’s Bank of China is considering switching its main policy benchmark from the seven‑day reverse repurchase rate to the overnight reverse repurchase rate. The overnight repo would replace the seven‑day reverse repo, which has served as the main policy benchmark since 2024. These are initial state‑media/Reuters reports; markets should watch for an official PBOC announcement with operational details and timing.

The Federal Reserve's October 14 Beige Book reports accelerating price increases in four districts, with diesel surcharges passing through supply chains, while employment remains broadly steady. Nine districts reported slight-to-moderate activity growth and three no significant change. The survey is anecdotal, based on information gathered by October 5, and does not announce a policy-rate decision.

U.S. Impact: Current Low · Potential Elevated

Singapore's central bank held all three parameters of its Singapore-dollar exchange-rate policy band unchanged on October 14, defying a Reuters poll in which all ten economists expected tightening. MAS retained an appreciating band and forecast imported inflation to moderate during 2027.

At an October 13 cabinet meeting, President Lee Jae Myung said South Korea would likely need to raise policy rates to narrow its gap with U.S. rates. The Bank of Korea, which independently sets rates, has not announced a new hike in response. The remarks add political pressure to an already tightening monetary-policy environment.

U.S. Impact: Low

On October 10, India's Reserve Bank announced a dedicated U.S.-dollar supply facility for three state-owned oil marketers, effective October 12, and new restrictions on rupee-linked derivatives. The measures respond to severe currency and imported-energy pressures; they are new actions distinct from the October 7 rate hike and October 9 bond-sale announcement.

A presidential memorandum dated October 7, publicly reported October 9, establishes a committee to investigate allegations that Federal Reserve Governor Lisa Cook made false mortgage-related statements. A closed White House hearing is scheduled for November 5. Cook's attorneys dispute the allegations. The inquiry does not itself remove her or change monetary policy.

A presidential memorandum dated October 7 and publicly reported October 9 establishes a committee to investigate allegations concerning Federal Reserve Governor Lisa Cook's mortgage statements. A closed hearing is scheduled for November 5, with findings and a possible removal recommendation to follow. Cook's lawyers dispute the allegations. No removal or policy-rate change has occurred.

The RBI said it would sell 250 billion rupees of bonds and require banks to maintain 99% of daily cash-reserve requirements from October 16, up from 90%.

India's RBI voted unanimously October 7 to raise its repo rate to 5.50% and change its stance from neutral to calibrated tightening, its first rate increase in nearly four years.

The Reserve Bank of India raised its repo rate 25 basis points to 5.50% on October 7 and moved its policy stance from neutral to calibrated tightening amid inflation and energy-cost risks.

The Reserve Bank of India raised its policy rate by 25 basis points and adopted a calibrated-tightening stance amid energy-driven inflation pressure, while lifting its growth outlook.

The Reserve Bank of India unanimously raised its repo rate 25 basis points to 5.50%, its first increase in nearly four years, and shifted policy from neutral to calibrated tightening.

Minutes of the Federal Reserve's September 15-16 meeting show a few participants favored strengthening the Fed's strategy, communications and tools for potential Treasury-market dysfunction while limiting its market footprint, a notable financial-stability signal as long-term yields sit near multi-decade highs.

The Reserve Bank of India unanimously raised its benchmark repo rate by 25 basis points to 5.5% and shifted its policy stance from neutral to calibrated tightening as oil, food and broader inflation pressures build.

Dallas Fed President Lorie Logan said the federal funds target range likely needs to rise at least another 50 basis points to become modestly restrictive and restore inflation to the Fed's 2% goal.

The Bank of Japan's September Tankan showed large-manufacturer sentiment improving to +24 from +22 while firms continued to expect inflation above the BOJ's 2% target over multi-year horizons, reinforcing the case for further monetary tightening after September's rate increase.

China cut its pledged supplementary lending rate by 25 basis points and announced a nationwide mortgage-interest subsidy for eligible first-home buyers, while expanding targeted relending quotas to support infrastructure, technology, private firms, agriculture and small businesses.

The Reserve Bank of Australia raised its cash-rate target by 25 basis points to 4.6%, the fourth increase of 2026 and the highest policy rate since 2011, as persistent inflation keeps monetary policy tightening despite softer labor-market signals.

Bank of Mexico unanimously held its benchmark rate at 6.50% as expected but removed language used in its prior three statements saying it would be appropriate to keep the policy rate at its current level going forward. The change reopens policy optionality while inflation risks remain tilted upward.

Norges Bank unanimously raised Norway's policy rate by 25 basis points to 4.50%, effective September 25, and said rates will likely need to remain elevated for a time, with further tightening possible if inflation stays persistent.

Nigeria's central bank cut its Monetary Policy Rate by 350 basis points to 23% on September 22, a much larger move than typical policy adjustments and below broad expectations for a hold or substantially smaller reduction. Governor Olayemi Cardoso framed the move as a reset intended to restore monetary-policy transmission rather than an abandonment of the disinflation stance.

Sweden's Riksbank held its policy rate at 1.75% but materially shifted its forward path, saying rate increases are expected to begin this year if the outlook holds and projecting substantially higher rates through 2027-2029 than in June.