The Reserve Bank of Australia currently maintains the highest policy rate in the G10 at 4.35%, having paused its tightening cycle to assess economic momentum. Similarly, Norway’s Norges Bank held at 4.25% but signaled that further increases are likely as annual core inflation persists at 3.4%. In London, the Bank of England held rates at 3.75%, though policymakers remain cautious, anticipating inflation will climb above 3.25% by the final quarter.

In Washington, Kevin Warsh’s debut as Federal Reserve chair signaled a notable shift. Despite holding rates steady, the Fed’s updated projections revealed that nine officials anticipate a hike before the end of the year, a prospect that sent short-term bond yields surging. Meanwhile, the Bank of Japan reached a significant milestone, raising rates to 1%—a 31-year high—as part of a broader normalization effort. At the other end of the spectrum, the Swiss National Bank remains at 0%, prioritizing currency stability while monitoring fuel-driven inflation. Across the board, the mandate is shifting from crisis management to preemptive tightening as central banks attempt to contain inflation before it embeds itself in the broader economy.