Macro · Weekly Economic Monitor Viewpoint

Key arguments

• Fed delivered a 25bp hike to 3.75-4.00% with a more hawkish-than-expected message and projections showing inflation returning to target only in 2029.
• The institution expects at least one more Fed rate hike in December, with rate cuts postponed to 2028 and beyond.
• BoJ tightened 25bp to 1.25% but with a cautious tone; the institution sees the next hike in January.
• Eurozone August inflation was revised down by one-tenth to 3.2%, yet new energy tensions are expected to push headline inflation toward 4% as early as coming months.

Corresponding source evidence

1. Viewpoint A week dominat ed by central banks .The Fed raised rates by 25 basis points to 3.75 - 4.00%, with a more hawkish -than -expected message and projections pushing back the return of inflation to 2% to 2029; we now expect at least one more rate hike in December. · 2029
2. In the Eurozone, August inflation was r evised down by one -tenth of a percentage point to 3.2%, but new energy tensions are expected to push headline inflation toward 4% as early as the coming months.
3. The September FOMC meeting concluded, as expecte d, with a 25 -basis -point hike in the federal funds rate target to 3.75 –4.00%, decided unanimously and accompanied by a more hawkish -than -anti cipa ted statement .