The Hong Kong Monetary Authority published its September 2026 assessment of economic and financial conditions, including the performance and risks of the local banking sector.

Federal Reserve Board Governor Lisa D. Cook said AI investment is adding near-term inflation pressure that productivity gains are unlikely to offset later in 2026. She warned that deeper adoption could temporarily increase unemployment through skills mismatches, while reiterating that future rate adjustments will depend on inflation, labor data and the economy's response to recent tightening.

South African Reserve Bank Governor Lesetja Kganyago said tight monetary policy is needed to return inflation to 3% around the end of 2027. He warned that overlapping geopolitical, climate, AI and debt risks could intensify inflation and financial stability pressures. South Africa’s fiscal and market position has improved, but persistently weak growth remains a major constraint.

The Central Bank of Bosnia and Herzegovina estimated annual core inflation at 4.36% for the first eight months of 2026 and services inflation at 4.63%. Rates remained near 2025 levels, while higher international energy prices are also feeding into headline inflation.

Central Bank of Uruguay President Guillermo Tolosa highlighted inflation of 4.5% and stronger resilience to external shocks during a meeting with business representatives in Salto. He said macroeconomic stability provides greater certainty for investment, planning and long-term decisions.

European Central Bank Executive Board member Philip R. Lane reviewed projections showing euro area inflation declining from 3.0% in 2026 to 2.1% in 2028, while GDP growth rises from 0.9% to 1.5%. The 2026 inflation increase is driven partly by energy, while tighter financial conditions are expected to weigh on both growth and inflation through 2028.

The People's Bank of China's Monetary Policy Committee called for stronger countercyclical support while maintaining a moderately accommodative stance. It recommended ample liquidity, lower financing costs and targeted support for domestic demand, innovation and smaller businesses. The committee also emphasized bond market monitoring and broad renminbi stability.

The Bank of Guatemala projects GDP growth to slow to 3.3% in 2026 and 3% in 2027. Headline inflation was 3.37% in August, while the end-2026 forecast was cut to 2.89% from 3.75% before a projected return to 4% by December 2027.

The Bank of Japan raised its policy rate from around 1% to around 1.25% as underlying inflation approached its 2% target and upside risks increased. Governor Kazuo Ueda signaled further data-dependent increases, with no preset pace, and did not exclude consecutive or larger moves if inflation warrants them. The bank also moved its climate financing operation to a variable rate and set a JPY 50 trillion cap.

Federal Reserve Board Governor Michael S. Barr said further monetary policy adjustments are likely to be needed after he supported last week’s rate increase. He attributed housing unaffordability largely to a supply shortfall of 2 million to 5.5 million units, compounded by construction constraints and high financing costs. Barr urged coordinated action to expand supply and support low- and moderate-income households.

The European Parliament’s Committee on Economic and Monetary Affairs will discuss the ECB’s monetary policy with President Christine Lagarde on Sept. 28. The dialogue follows the ECB’s second 25 basis point rate increase of 2026 and will examine how artificial intelligence could affect inflation and monetary policy transmission.

The Czech National Bank’s analyst survey left the one-year inflation forecast at 2.6% but raised the three-year outlook to 2.2%. Most respondents expect the two-week repo rate to remain at 3.75% in one year, despite growing inflation risks. GDP forecasts were unchanged, while the 2026 wage growth estimate fell to 6.6%.