Fed, ECB Rate Hikes on Hold as Inflation Fears Fade

The US Federal Reserve and European Central Bank may not raise interest rates as expected in October, following soft jobs data and stress in French financial markets.

The minutes of the Fed's September meeting, due out on Wednesday, could reveal that many policymakers were concerned about inflationary pressures, but fresh employment data showed lower-than-expected job creation and lacklustre wage growth.

The US central bankers will meet over Oct 27-28, just ahead of the midterm elections, which may be overshadowed by partisan politics.