Central Banks Hold Rates Steady

Several central banks left policy rates unchanged this week as they balanced moderating inflation with support for growth. The Czech National Bank held its two‑week repo at 3.5% (discount 2.5%, Lombard 4.5%), noting Q2 GDP growth of 2.6%, headline inflation of 2.5% in August and core inflation near the upper tolerance band. Sri Lanka kept its overnight policy rate at 7.75% to support steady growth ahead of the November budget and an IMF review, and Paraguay left its benchmark at 6% for the 18th consecutive month while expecting inflation to remain within target through year‑end. Bank Al‑Maghrib in Morocco held the policy rate at 2.25%, citing moderate inflation, high uncertainty and measures to ease financing for very small enterprises, and Morocco’s growth is projected to accelerate to 4.6% in 2025 supported by infrastructure projects ahead of the 2030 World Cup. Hungary’s central bank kept its base rate at 6.50% (overnight deposit 5.50%, lending 7.50%), marking roughly a year of unchanged policy (its eleventh/twelfth consecutive meeting) and said it will publish updated inflation forecasts.