A lacklustre global economic recovery has delayed the onset of interest rate tightening cycles around the world, say TD economists in the August issue of Global Markets.

“As a spate of weaker-than-expected economic data and a further drop in global equity markets have cast a shadow over the near-term outlook – dealing investor confidence another blow — central banks have been busy dialing back plans for rate hikes,” said Gillian Manning, international economist at TD Bank Financial Group, in a release.

TD economists say the U.S. Federal Reserve has been quick off the mark with its shift to an easing bias at the August 13 Federal Open Market Committee meeting — keeping alive the prospect of a rate cut in September. Other central banks are expected to follow the Fed’s lead, with only the Bank of Canada expected to buck the trend says TD. The strong Canadian economy makes ” a rate hike in September still the likeliest outcome,” said Manning.