Economists Forecast Central Bank Holds, Anticipate Future Tightening Amid Persistent Inflation

TD Securities economists predict the Federal Reserve will hold its policy rate at 4.00% in October, with further tightening expected in December and March. Similarly, Commerzbank economists forecast the European Central Bank (ECB) to maintain its deposit rate at 2.50% in October before a potential increase to 2.75% in December due to persistent eurozone inflation. Meanwhile, RBC economists noted that Bank of Canada communications indicate a greater willingness to act preemptively against inflation, though economic slack still justifies a cautious approach. In currency markets, USD/CAD fell to a one-month low, extending its decline, while USD/CHF rebounded.