Central Banks Raise Rates Amid Global Economic Uncertainty

The third quarter of 2026 came to an end with significant rate hikes by major central banks, including the Federal Reserve, European Central Bank, and Bank of Japan. This move was intended to combat inflation and stabilize economies.

Emerging market economy currencies performed relatively better in September compared to other regions. The Chinese yuan, which accounts for approximately 21% of the BCWI, saw a minor increase of 0.20% during this period.

The Bank of England held steady on interest rates in September but hinted at an upcoming hike, with market odds suggesting an 85% chance of a rate increase at its November meeting.