Washington: Central banks worldwide maintain their cautious stance as they prepare to enter the fourth quarter of the year, amid the global fight against inflation and the US' protectionist policy stance.

According to Anadolu Agency, tariff-induced concerns over price increases in the US have led to worries that inflationary pressures could intensify, fueling further uncertainty. The US Federal Reserve, the European Central Bank (ECB), the Bank of Japan (BoJ), the Reserve Bank of New Zealand (RBNZ), and Trkiye's Central Bank are all set to make crucial monetary decisions in October.

The Federal Reserve cut its policy rate for the first time this year, reducing it by 25 basis points to a range of 4 to 4.25% in September, aligning with estimates. Fed Chair Jerome Powell indicated that the balance of risks has shifted with rising downside risks to employment, though it did not warrant a 50-basis-point cut. Signals from US employment and inflation data, to be released next month, will be decisive in the Fed's monetary policy decision on October 29.

The Fed is expected to cut rates by another 25 basis points in October, while the market anticipates a total of two cuts of 25 basis points each by the end of the year. Analysts suggest that as risks to employment decrease, the Fed may skip a rate cut in either October or December.

Meanwhile, the BoJ maintained its policy rate unchanged at 0.5% this month and is expected to do the same at its October meeting, while possibly increasing rates by 25 basis points by the end of the year. The Bank of Korea held its rate steady at 2.5% in August, amid limited improvements in the country's economy and tariff-induced uncertainties affecting growth outlook. Its next monetary policy decision is scheduled for October 23, though predictions remain unclear.

The RBNZ is expected to cut rates by 25 basis points on October 8. Simultaneously, attention is focused on the ECB's rate decision. The ECB maintained its three key policies at its recent meeting on September 11, as the eurozone's medium-term inflation was near the 2% target. The ECB cut its three key policy rates by 100 basis points earlier this year before pausing its rate cut cycle in July. With consumer inflation in August below estimates at 2% annually, ECB officials signal no further easing of monetary policy is expected, and market estimates reflect no changes to the three key policy rates on October 30.

In Trkiye, the Central Bank cut its policy rate by 250 basis points to 40.5% in September. The bank also reduced its overnight lending rate from 46% to 43.5% and the overnight borrowing rate from 41.5% to 39%. Slowing inflation in August and stronger-than-expected growth in the second quarter prompted these cuts, while domestic demand remained weak. The Turkish Central Bank will announce its monetary policy decision on October 23.