Brazil’s central bank signalled it may stop raising interest rates soon after policy makers unexpectedly slowed the pace of increases and said inflation was less of a threat amid slowing global growth.
The European Central Bank left its key interest rate on hold for the fourteenth consecutive month in July as the region's banks face stress tests to ensure the stability of the financial system that is threatened by investor fears about debt.
The Bank of England has kept UK interest rates on hold at a record low of 0.5% for the 16th consecutive month. The Bank's Monetary Policy Committee (MPC) also decided on Thursday not to inject any more money into the economy under its policy of quantitative easing (QE).
Australia's central bank has raised interest rates for the sixth time in eight months as the country's economy continues to recover. The target interest rate is now at 4.5%—up from 3% in October last year.
Central Bank of Brazil increased on Wednesday the benchmark interest rate for the first time in 19 months in an effort to cool an economy forecast to expand 6% this year, one of the highest rates in two decades.
The US Federal Reserve decided on Wednesday to leave interest rates unchanged saying the current recovery will not result in rampant inflation and anticipated exceptionally low level rates for an extended period.
Brazil’s next government will need to be “very serious” about keeping inflation within its target range so real interest rates can continue to fall, Central Bank President Henrique Meirelles said.