Bank of England expected to leave interest rates on hold as Middle East conflict pushes up oil price – business live
Rolling coverage of the latest economic and financial news, as Switzerland and Philippines cut interest rates
Newsflash: We have a third interest rate cut this morning!
Norway’s central bank has surprised analysts by cutting its policy rate by a quarter of one percentage point, to 4.25%. The rate had been set at 4.5% since December 2023.
“Inflation has declined since the monetary policy meeting in March, and the inflation outlook for the coming year indicates lower inflation than previously expected.
A cautious normalisation of the policy rate will pave the way for inflation to return to target without restricting the economy more than necessary.”
“The uncertainty surrounding the economic outlook is now greater than normal. If the economy takes a different path than currently envisaged, the policy rate path may be adjusted. But our objectives stand firm. We will finish the job and ensure that inflation is brought all the way back to 2 percent.”
The Monetary Board also noted indications of a deceleration in global economic activity, driven primarily by uncertainty over US trade policy and the conflict in the Middle East. This would lead to slower growth in the Philippines.
A rise in oil prices, electricity rate adjustments, and higher rice tariffs, would add to inflationary pressures.
Continue reading...© Photograph: Carlos Jasso/Reuters
© Photograph: Carlos Jasso/Reuters