World Economy

ECB Ready to Tighten Policy as Global Central Banks Calibrate Inflation Response

The European Central Bank stands prepared to implement stronger measures if inflation fails to reach its target, Governing Council member Joachim Nagel said. The ECB's measured approach reflects assessments that most price pressures stem from international supply factors rather than domestic demand, according to fellow Governing Council member Emmanuel Moulin. Global monetary authorities are recalibrating their stances as inflation dynamics shift. Japan's central bank kept rates steady after underlying inflation reached its 2% target for the first time in over a decade. The Federal Reserve held its benchmark rate unchanged but faces investor expectations for a rate increase at its December meeting. South Africa's central bank chief indicated its current policy framework should successfully reduce inflation toward its 3% goal as geopolitical shocks dissipate.