Central Banks Dial Back Rate Hike Urgency Amid Soft Data

The Federal Reserve (Fed) and European Central Bank (ECB) have tempered their plans for near-term interest rate hikes in light of softer US labor market data and strain on French bond markets.

Recent job creation and wage growth missed forecasts, which has strengthened the case for patience among policymakers. The Fed's minutes, due out on Wednesday, may show that many officials still eye a single additional increase before year-end, while the ECB's September account on Thursday will be scrutinized for timing clues.

Two influential Fed officials, Vice Chair Philip Jefferson and New York Fed President John Williams, have signaled there is little urgency to raise rates quickly. This has led investors to trim their rate-hike expectations.

The global economic landscape remains complex, with a dozen central banks set to decide policy this week. India's Reserve Bank is expected to hike its repurchase rate to 5.5%, while the ECB faces pressure to address euro-area inflation concerns.