Major Central Banks Pause Rate Hikes While Emerging Markets Diverge

In October, major central banks held rates steady for the first time since Jan 2022 after aggressive hikes earlier in the year.

The Fed, ECB, RBA, RBNZ, and BoC left rates unchanged while emerging markets diverged.

Asia continued tightening while Latin America and Eastern Europe cut rates, extending the split between regions.

Analysts say higher yields may be doing some of the tightening work for developed central banks.

The Fed is likely closest to ending its hiking cycle while divergence continues among emerging markets.