Central bankers across three major economies signaled this week that a prolonged pause in interest rate hikes is increasingly likely, following inflation data that surprised to the downside for a second consecutive month.
The shift comes after consumer price figures released Wednesday showed a sharper-than-expected cooldown, driven largely by falling energy costs and a stabilizing housing market.
Markets responded cautiously, with bond yields dipping and equity futures edging higher in after-hours trading as investors recalibrated expectations for the pace of future policy moves.
Some analysts warned against reading too much into a single data point, noting that core inflation measures excluding food and energy remain above target in two of the three economies.
Still, the tone from policymakers marked a clear departure from the more hawkish language used just months ago, and futures markets now price in a pause at the next scheduled meeting with high confidence.