ECB and Federal Reserve hold rates, with the Bank of England next to decide on 5 November

Two of the world's big central banks left borrowing costs alone this week, and both flagged inflation in their statements. That leaves the Bank of England, whose Monetary Policy Committee announces its decision on Thursday 5 November with Bank Rate at 3.75%.

The European Central Bank kept its three key rates unchanged on Thursday, with the deposit rate at 2.50%, the main refinancing rate at 2.65% and the marginal lending rate at 2.90%. It had raised rates twice earlier this year. Christine Lagarde said the decision was unanimous, though the Governing Council had debated whether a rise was appropriate before deciding to wait for more information.

Euro area inflation climbed to 3.8% in September from 3.2% in August, and energy inflation reached 18.9%. The ECB said energy prices were still rising and the full effects of the shock were unfolding, but underlying inflation had been broadly stable and wages had not responded materially so far.

Before its December meeting the ECB will have new staff projections and two more inflation readings. It said it was not committing to any path for rates. Lagarde also said she would step down as president, remaining in charge until 7 February 2027.

Washington split

The Federal Reserve held its target range at 3.75% to 4% on Wednesday by 10 votes to 2. Governor Lisa Cook and Cleveland Fed President Beth Hammack both wanted a quarter-point rise. The committee's statement said inflation remained elevated, and that activity was expanding at a strong pace.

What comes next in London

The Bank's November decision arrives with its Monetary Policy Report, which the committee publishes alongside the summary and minutes. It is the first since the Budget on 28 October. One more decision follows this year, on Thursday 17 December.