Fed's Williams said periods of strong productivity could raise the natural rate of interest.

Monex Europe analysts say the Bank of England could raise rates in November in response to an energy-price shock, but the move may not support sterling because the shock is also weighing on growth. They flag continued fiscal risk ahead of the Oct. 28 budget; Chancellor Healy has stressed fiscal discipline but most fiscal buffers have been exhausted. Analysts say sterling faces two-way risk until the fiscal position is clarified.

Google (GOOG.O) said the EU decision would force it to share users' private search histories and would weaken key Android security protections.