Central Banks Mostly Hold Rates Amid Geopolitical Uncertainty

NEW YORK, April 2 - Major central banks kept interest rates steady in March, citing uncertainty from the Middle East war and volatile oil prices.

In developed markets, eight of nine March meetings left rates unchanged, with Australia being the exception, raising borrowing costs by 25 basis points. No major developed economy cut rates during the month.

Emerging markets showed slight variation but remained cautious. Ten of 15 central bank meetings held rates steady, while Russia, Brazil, Mexico, and Poland each cut rates by 25 basis points. Colombia sharply raised its benchmark rate by 100 basis points, leading to government resignation from the central bank board.

Several central banks, including Indonesia, South Africa, and the Philippines, cited Middle East conflict impacts on inflation as reasons to delay rate cuts. This reflects a broader global shift where policymakers balance slowing growth with energy-driven price risks.

This year, emerging market banks have eased by 175 basis points overall, despite some aggressive moves like Colombia's 200 basis point hike.