North America set to cut rates as rest of G-7 looks on

Economic Outlook - The upcoming week will feature significant inflation data from Australia, the euro zone, and purchasing manager indexes from China, alongside rate decisions in Chile and Colombia [1] - The Federal Reserve is expected to cut rates by a quarter point, with concerns about employment and inflation influencing this decision [2][8] - The Bank of Canada is also anticipated to reduce its benchmark rate to 2.25% despite recent positive inflation and job reports [10] Central Bank Actions - North America is likely to see major monetary policy actions, with the Federal Reserve and Bank of Canada both expected to implement rate cuts [5] - The Bank of Japan is predicted to maintain its current rate, while the European Central Bank is not expected to ease further at its upcoming meeting [4][17] - Chile's central bank may delay rate cuts due to persistent inflation above target levels, with potential cuts pushed to December [24] Regional Economic Indicators - In the euro zone, growth is projected to be minimal, with a forecast of just 0.1% growth in the third quarter, influenced by US tariffs [18][19] - Germany's Ifo business gauge is expected to show slight improvement, while France's growth is forecasted to slow to 0.2% in the third quarter [19] - In Asia, inflation and trade data will be crucial for assessing the region's recovery, with Australia and Japan's central banks closely monitoring price pressures [12][13] Trade and Political Developments - US President Trump's trade policies will be under scrutiny during his meetings with Asian leaders, particularly with Chinese President Xi Jinping [6] - Political instability in France may have limited immediate economic impact, but ongoing negotiations for a budget could affect market sentiment [20]