Hot Thursday of central banks. Interest rates go up everywhere

Interest rates in Switzerland, Norway and the UK have been hotly debated today. The central banks of these countries have taken monetary policy decisions aimed at addressing rising inflationary pressures and ensuring economic stability. Here's a quick summary of today's three decisions.

SNB raises rates as expected

Swiss National Bank (SNB) decided to tighten the monetary policy again, raising the interest rate to 1,75%. They are aimed at countering the growing inflationary pressure that has increased in the medium term. SNB it also warns that further interest rate hikes may be needed to ensure price stability over the longer term.

The Bank of Norway surprises with a hike of 50 bps

Bank of Norway also surprised by raising interest rates to combat high inflation and ensure economic stability. The increase amounted to 0,50 percentage point, which resulted in strengthening of the Norwegian krone. The Bank of Norway stresses the need to take action to ease inflationary pressures resulting from high wage increases and a weaker currency. Future decisions on the interest rate will depend on the economic situation, and the Bank of Norway forecasts further increases in the coming months.

Bank of England unexpectedly raises rates to 5%

In the UK Bank of England announced a surprise interest rate increase of 0,5 percentage points, setting it at 5%. Their goal is to meet the 2% inflation target and to support economic growth and employment. This decision was supported by the majority of members of the Monetary Policy Committee, although two members opted for keeping the lower rate. The Bank of England will monitor inflation rates and labor market developments, and further interest rate hikes may be necessary if persistent inflationary pressures emerge.

All three central banks stress the need to take action to combat high inflation and ensure economic stability. The central banks of Switzerland, Norway and Great Britain are taking decisive steps, and with them further increases may be observed in the United States and in the euro area.