Pause

Pause means a central bank stops changing interest rates for a period of time. In simple terms, a pause happens when the central bank holds rates steady instead of raising or cutting them. A pause is important because it can show that policymakers want more time to study inflation, jobs, and economic data before making the next move. Markets often watch whether a pause is temporary or the start of a policy shift. For example, after several rate hikes, the Fed may pause to see how the economy reacts. A pause is not the same as a rate cut. It means rates are unchanged, not that policy is becoming easier immediately.