LONDON, May 3 Reuters Interest rates at major central banks remained static in April as the prospect of higherforlonger U.S. Federal Reserve rates exerted some pressure on policymakers, especially in emerging markets, where Indonesia delivered a surprise hike.
All four of the central banks overseeing the 10 most heavily traded currencies that held meetings in April the Bank of Japan, the Bank of Canada, the European Central Bank and the Reserve Bank of New Zealand kept benchmark lending rates unchanged. Policy makers in Switzerland, Sweden, Australia, Norway and Britain did not hold rate setting meetings.
The Fed, whose rate setting meeting straddled April and May, also left rates unchanged when its decision was published on Wednesday.
U.S. data, pointing to strong growth but also worrisome inflation pressures, cemented a divergence between the world39;s top central bank and its G10 peers in April.
The inflation downtrend is alive but unstable, persuading central banks to wait longer and cut key rates more slowly, said Daniel Bergvall, head of forecasting at SEB.
This is now creating different playing fields for major central banks.
Money markets show traders see a high chance that the ECB will start cutting rates in June, but the first full quarter percentage point rate reduction for the Fed is now only priced in for November, according to LSEG data.
The prospect of higherforlonger U.S. rates also shaped policy making in emerging economies which had been…