By Ed Frankl
The Bank of England is set to decide later Thursday whether to raise or hold its key interest rate from the current 5.25%, the climax of a week of critical central-bank meetings. Economists are split on whether it will hike, with signals of a slowing economy and inflation in August declining more than expected balanced by the inflationary threat of accelerating wages. Central banks in Turkey and South Africa also meet Thursday. Here are some of decisions central banks have made in recent days:
--The U.S. Federal Reserve held rates on Wednesday, keeping its funds range at between 5.25% and 5.5%. Policymakers appear split on whether to raise rates again before the end of 2023, while officials also indicated that rates would be higher for longer through 2024 than previously anticipated.
--Switzerland's central bank unexpectedly held its key policy rate at 1.75% on Thursday, after it said it now expects inflation to meet its target of under 2% from 2025 onward. The franc slipped to a two-month low against the euro after the decision.
--The Norges Bank ticked up its key rate by 25 basis points to 4.25% as expected by economists and said another increase is likely later this year, most probably in December. The krone rose against the euro in response.
--Sweden's Riksbank lifted its policy rate to 4.0% from 3.75% as anticipated, and said it could tighten further as it fights both high inflation and a weak krona.
--In a decision that was seen as a toss-up, the European Central Bank last week increased its key deposit rate by a quarter point to 4.0% but signaled that rates may have peaked, leading the euro to slide against the dollar.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
09-21-23 0603ET
