Central banks in Switzerland, Norway, Sweden cut rates due to weaker inflation outlooks.

From Yahoo Finance: 2025-06-19 08:39:00

The Swiss and Norwegian central banks cut rates due to weaker inflation outlooks, contrasting with the Federal Reserve’s warnings about higher U.S. prices. The Bank of England kept rates steady, hinting at a gradual downward path. Trump’s trade threats and the Israel-Iran conflict create unprecedented uncertainty for global economies.

Inflationary pressure has decreased, prompting rate cuts in Switzerland and Norway. Sweden’s central bank also cut rates, citing weak price pressures. The European Central Bank paused policy easing as inflation hit its 2% target. The Bank of Japan remains cautious due to downside risks from U.S. tariffs.

The latest central bank decisions show the impact of less free global trade. The Fed predicts modest stagflation for the U.S. economy in 2025. Fed policymakers expect borrowing costs to fall, but Chair Powell warns of data dependency. Tariffs could weaken global growth and jobs, sparing consumers from inflation.

Uncertainty remains over the impact of escalating conflict in the Middle East on oil prices. Trump’s tariff threats may lead to retaliation from trading partners. Countries will face higher tariffs unless deals are reached by July 9. Central banks worldwide are closely monitoring developments to guide future policy decisions.



Read more at Yahoo Finance: As war and tariffs fog the outlook, some central banks trim rates