Central banks|Inflation concerns are still gnawing at Norway and Britain, in Switzerland the central bank is concerned about low inflation and a strong currency.
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The central banks of Norway and Great Britain kept their key interest rates unchanged.
The Swiss National Bank lowered its key interest rate by 0.25 percentage points.
In Norway, interest rates are kept unchanged due to continued inflation.
The announcement by the Bank of England points to a possible rate cut at the end of the summer.
Norwegian and the British central banks decided to keep key interest rates unchanged at their Thursday interest rate meetings.
The Swiss National Bank, on the other hand, lowered its key interest rate by 0.25 percentage points to 1.25 percent.
in Norway central bank boat keeps the key policy rate at 4.25 percent.
The reason for keeping the key interest rate unchanged was the central bank’s assessment that inflation would seem to continue stubbornly.
By raising the interest rate, economic activity and at the same time the rise in prices can be curbed, monetary policy believes.
The central bank estimates that interest rates will likely be kept at this level for the rest of the year, Bloomberg interpreted the announcement.
The Norwegian krone strengthened by 0.5 percent against the euro after the interest rate decision.
In Norway, interest rates are at their highest level since 2008.
in Britain the central bank, i.e. the Bank of England, decided at Thursday’s meeting to keep the key interest rate unchanged in 5.25 percent.
According to Bloomberg, the central bank’s announcement was interpreted as meaning that interest rate reduction measures could be imminent, perhaps already at the end of summer, i.e. at the August meeting.
Governor of the Central Bank of Andrew Bailey for the first time in almost three years, inflation was brought down to the target level of two percent, but the central bank wants to be sure that the upward pressure on prices will remain under control before a possible decision to cut interest rates.
The central bank’s caution in its monetary policy can also be explained by the fact that the prime minister Rishi Sunak has ordered the parliamentary elections to be held at the beginning of July.
Bank Of England Governor Andrew Bailey.
Swiss central bank lowered the cost of borrowing again in its battle against low inflation and a strengthening Swiss franc.
The central bank decided to lower the key interest rate by 0.25 percentage points to 1.25 percent. At the same time, the central bank lowered its inflation forecast for 2026 to one percent.
In Bloomberg’s analyst survey, a small majority of respondents had guessed that the interest rate would remain unchanged at Thursday’s interest rate meeting.
The Swiss franc weakened by 0.5 percent against the euro after the announcement of the interest rate decision.
Switzerland started corona reductions as the first strong industrialized country in March, the news agency Bloomberg reports.
In the country, inflation is lower than in the euro area, and a strong currency hinders exports.
Central banks in the Eurozone and Sweden have already started lowering interest rates.
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