New york: Global central banks are entering the last month of the year with a busy schedule, while inflation concerns seem likely to regain strength, prompting banks to act with caution.

According to Anadolu Agency, central banks are preparing to conclude this hectic year with declining tariff concerns and a focus on fighting inflation. US inflation and employment risks continue to hinder the Federal Reserve's decision for the coming period, while central banks around the world are on the lookout for impending monetary policy decisions.

The Federal Reserve is likely to cut rates at its upcoming meeting, following the longest government shutdown of 43 days, moderate inflation, and cooling employment data. The likelihood of the Fed cutting rates by 25 basis points in December stands at 86%, according to money market estimates. Some Fed officials advocate for caution to avoid disrupting the fight against inflation, while others see conditions as favorable for a rate cut. Recently, the Fed cut its policy rate by 25 basis points to 3.75-4% in October. The Bank of Canada is also scheduled to announce its interest rate decision on the same day, ahead of the Fed.

In Europe, the ECB is expected to leave its rates unchanged on Dec. 18, as the eurozone's annual inflation in October indicated a decline. The ECB is likely done with its easing cycle this year, having cut three key policy rates by 100 basis points before pausing in July. Meanwhile, the BoE is expected to cut its base policy rate to 3.75% on Dec. 18, with the total rate cut anticipated to reach 100 basis points for 2025.

The BoJ's course of action remains uncertain with a 57% possibility of raising its policy rate at its next meeting. Japan's central bank kept its policy rate unchanged at 0.5% in October, and it has not changed its inflation forecasts. Japan's annual core inflation rose to 3% in October, exceeding the BoJ's year-end estimates.

In Oceania, the RBA is widely expected to maintain its policy rate unchanged, having left it at 3.6% in November. The RBA noted that Australia's inflation fell significantly since its peak in 2022, but recent inflationary pressures have emerged. Australia's domestic economic activity continues to recover, though the outlook remains uncertain.

All eyes are on the Turkish Central Bank, which will make its monetary policy decision on Dec. 11. In October, the bank cut its policy rate by 100 basis points to 39.5%. The TCMB's board noted a disinflationary trend in demand conditions, although disinflation has slowed. Domestic investors in Trkiye are keen on the signals the bank will provide in this month's rate decision, with November's inflation data under scrutiny.