Core Insights - Major central banks, including the European Central Bank (ECB), the Federal Reserve (Fed), the Bank of Japan (BoJ), and the Bank of Canada, are adopting different monetary policy strategies amid stable inflation paths and high external uncertainties, indicating a new phase of data dependency and risk assessment in global monetary policy [1] Group 1: European Central Bank (ECB) - The ECB decided to keep the deposit facility rate unchanged at 2.00%, with the main refinancing rate and marginal lending rate also held steady at 2.15% and 2.40%, respectively, marking the third consecutive meeting without changes [2] - The ECB emphasized that its policy stance will rely on data and be assessed at each meeting, without pre-setting the interest rate path [2] - The ECB's asset purchase programs are being reduced in an orderly and predictable manner, as the euro system has ceased reinvesting the principal of maturing securities [2] Group 2: Federal Reserve (Fed) - The Fed announced a 25 basis point reduction in the federal funds rate target range to 3.75%–4.00%, marking the second consecutive rate cut, which aligns with market expectations [3] - The Fed noted that economic activity is expanding at a moderate pace, with employment growth slowing and the unemployment rate slightly rising, while inflation remains relatively high [3] - The Fed plans to end its balance sheet reduction operations by December 1, 2025, marking the conclusion of a three-year quantitative tightening period, during which its securities holdings decreased by $2.2 trillion [3][4] Group 3: Bank of Japan (BoJ) - The BoJ decided to maintain its policy rate at 0.5%, with a vote of 7 in favor and 2 against, amid increasing calls for rate hikes from some committee members [5] - The BoJ's governor stated that Japan's economy is experiencing moderate recovery but still shows signs of weakness, with inflation exceeding the 2% target for 41 consecutive months [5] - The timing of any future rate hikes will be based on data rather than a predetermined schedule, with upcoming wage negotiations being a key variable for assessing sustainable consumption and inflation [5] Group 4: Bank of Canada - The Bank of Canada lowered its key overnight rate by 25 basis points to 2.25%, the lowest level since July 2022, in response to the impact of U.S. trade policies on the Canadian economy [7] - The Bank of Canada significantly revised its GDP growth forecasts downwards, projecting a growth rate of 1.2% for 2025 and 1.1% for 2026, while maintaining an inflation target of around 2% [7] - The governor indicated that monetary policy cannot fully offset the structural damage caused by trade wars, and the unpredictability of U.S. trade policies adds to economic forecasting uncertainty [7] Group 5: Policy Divergence and Economic Outlook - Central banks are implementing differentiated strategies to address their unique structural challenges, emphasizing "no preset paths" and "data dependency," reflecting a cautious approach to economic outlooks [8] - The upcoming December meetings are expected to be critical observation points for potential shifts in policy direction as key economic data resumes publication [8]

Core Viewpoint - The European Central Bank (ECB) will adopt a data-dependent and meeting-by-meeting decision-making approach [1] Group 1 - The ECB emphasizes the importance of relying on economic data to guide its monetary policy decisions [1] - The decision-making process will be flexible and responsive to changing economic conditions [1] - This approach aims to ensure that monetary policy remains effective in addressing economic challenges [1]

Core Viewpoint - The European Central Bank (ECB) will adopt a data-dependent and meeting-by-meeting approach in its policy decisions [1] Group 1 - The ECB's strategy emphasizes reliance on incoming economic data to guide its monetary policy [1] - This approach suggests a flexible response to changing economic conditions rather than a predetermined path [1] - The ECB aims to ensure that its decisions are aligned with the latest economic indicators and trends [1]