Central banks around the world eased monetary policies in October, responding to inflation concerns, although these efforts were limited.

As economies near the end of a three-year battle with inflation, central banks continue to adjust their policies.

The European Central Bank (ECB) cut its key policy rates by 25 basis points: the deposit rate to 3.25%, the refinancing rate to 3.40% and the marginal lending rate to 3.65%, in line with expectations.

ECB President Christine Lagarde pointed to weaker-than-expected economic activity in the eurozone, sluggish corporate investment and a drop in housing investment.

The Bank of Canada (BoC) cut its key rate by 50 basis points to 3.75%, easing for the fourth consecutive meeting. The BC noted that inflation is no longer broad-based and should remain close to its target.

The Bank of South Korea (BOK) cut its key rate by 25 basis points to 3.25%, marking its first rate cut since 2020. The bank pointed to slower inflation, slowing debt growth families and reducing risks in the foreign exchange market.

Meanwhile, the People's Bank of China (PBoC) left its key policy rate unchanged, signaling a cautious stance despite other stimulus efforts. The National Interbank Funding Center (NIFC) cut the one-year prime lending rate (LPR) from 3.35% to 3.10% and the five-year LPR from 3.85% to 3.60%.

The Bank of Japan (BoJ) kept its short-term interest rate at 0.25%, forecasting continued economic growth and a 2.5% increase in the core Consumer Price Index (CPI) for fiscal year 2024.

In contrast, Russia's Central Bank raised its key interest rate by 200 basis points to 21%, the highest ever, citing rising inflation and rising domestic demand outstripping supply.

The Reserve Bank of New Zealand cut its key rate by 50 basis points to 4.75%, its second rate cut in 2024.

Other central banks, including those of Hungary, Poland and India, kept their interest rates unchanged at 6.50%, 5.75% and 6.50% respectively. /AA