Filtered by Subscriptions: Nordic & Swiss Economics Use setting Nordic & Swiss Economics
The decision by the Riksbank to raise interest rates from 4.25% to 4.50% was widely expected, but the Bank’s signal that rates could rise twice more this year shows that it believes the economy will need to slow sharply in order to contain inflationary …
3rd July 2008
The Norges Bank’s decision to raise interest rates again today clearly shows that it remains concerned about rising inflationary pressures. This will support the Norwegian krone in the near term. … Norges Bank responds to inflation …
25th June 2008
Switzerland’s dependence on the troubled financial services sector points to the risk of an extremely hard landing. We think that the consensus forecasts for Swiss GDP growth are much too complacent and see the economy suffering an outright recession this …
24th June 2008
The Swiss National Bank’s decision to leave its target range for three-month interest rates on hold (at amid-point of 2.75%) was a relief amid concerns that inflation fears might force the Bank to hike rates. Comments accompanying the decision do not …
19th June 2008
The further fall in Swedish house prices in May adds weight to our view that household spending growth will slow sharply this year. This should ultimately prompt the Riksbank to cut rates in 2009. But with CPI inflation at a 15-year high, another rate …
16th June 2008
Concerns about the health of the Swedish banking system have increased further in response to a growing threat of an exchange rate devaluation in the Baltics. While the impact of such a devaluation on the Swedish banking system may be exaggerated, rising …
3rd June 2008
As expected, the Swedish Riksbank kept interest rates on hold today while the Norges Bank raised rates to 5.50%. But while the markets apparently see little chance of rates falling in 2008, we expect slowing activity to lead both Banks to start to cut …
23rd April 2008
After leaving interest rates on hold as expected (at a mid-point of 2.75%) the Swiss National Bank stressed that it expects economic activity to slow sharply this year. While strong price pressures will prevent aggressive policy loosening, we still expect …
13th March 2008
The Norges Bank’s decision to leave interest rates on hold but signal that it expects to raise interest rates once more this year is likely to lead to a further strengthening of the krone. … Norges Bank signals the possibility of a further rate …
The surprise decision by the Swedish Riksbank to raise interest rates from 4.0% to 4.25% today confirmed that it remains concerned about the outlook for inflation. And with its latest interest rate projections little changed from those published in …
13th February 2008
The Swedish economy has slowed in recent months, but with inflationary pressures still alive and kicking we expect the Riksbank’s response to be less aggressive than markets anticipate. Indeed, we think that the Bank will wait until the final quarter of …
30th January 2008
The SNB was never likely to shock markets with an interest rate hike today, particularly in the current environment of uncertainty. While the Bank seems to have maintained a slight tightening bias, we think that slowing activity and a stronger franc will …
13th December 2007
The Norges Bank’s decision to raise interest rates today for the third time since the beginning of thefinancial market turmoil is in stark contrast to the actions of some other central banks. Given that theNorwegian economy continues to grow at a rapid …
12th December 2007
Today’s decision by the Norges Bank to keep interest rates on hold and to lower its projection for the future path of rates could lead to a renewed weakening of the krone following the strengthening of recent weeks. … Norges Bank strikes a more dovish …
31st October 2007
Today’s decision by the Norges Bank to raise interest rates for a second time since the turmoil in the financial markets is another demonstration that central banks are likely to remain focused on the outlook for activity and inflation. … Norges Bank …
26th September 2007
The Swiss National Bank (SNB)’s decision to hike rates adds to the evidence that the recent market turmoil does not preclude further policy tightening from central banks, especially when rates are relatively low to begin with. While the outlook for Swiss …
13th September 2007
The further strong gain in Swiss GDP in Q2 suggests that capacity pressures are continuing to build. This could keep the SNB in tightening mode, despite recent financial market turbulence and still subdued inflation. … Strong Swiss growth supports case …
4th September 2007
Today’s decision by the Norges Bank to press ahead with the previously indicated rise in its key interest rate from 4.5% to 4.75% supports our view that central banks are unlikely to be deflected from their planned policy paths by the recent developments …
15th August 2007
Today’s decision by the Swiss National Bank (SNB) to raise the target mid-point for 3 month interbank interest rates (Libor) by 25bps to 2.5% came as no surprise – indeed, the 3 month Libor itself had pretty much reached 2.5% already. More important were …
14th June 2007
Today’s decision by the Norges Bank to hike Norwegian interest rates by 25bps to 4.25% leaves rates comfortably in line with the Bank’s own forecast published in March’s Monetary Policy Report. However, given the strength of the latest economic data we …
30th May 2007
Although the Norges Bank unexpectedly kept rates on hold at 4% today, we do not think that this represents a fundamental change in the outlook for Norwegian interest rates ahead. … Norges Bank won’t wait long to continue …
25th April 2007
Today’s decision by the Swiss National Bank (SNB) to raise the target mid-point for the 3 month Libor by 25bps to 2.25% was fully expected – indeed, the 3 month Libor itself had already reached 2.25% earlier this week. More interestingly, though, the …
15th March 2007
The Norges Bank hiked interest rates today by 25bps to 4.0%, marking a fourth consecutive move and the ninth step in the tightening cycle which began in June 2005. This also keeps rates a step ahead of those in the euro-zone, though we expect the interest …
Data released earlier today showed Swiss GDP growth picking up only slightly in Q4, to 0.5% q/q from Q3’s disappointing 0.4%. The outturn was below the consensus forecast, which had been for arise of 0.7%, and seems to confirm that Swiss activity is now …
6th March 2007
Today’s surprise hike in interest rates by the Norges Bank lifts the official rate by 25bps to 3.75% andreopens a positive interest rate differential with the euro-zone for the first time in three years. This marks the eighth step in the tightening cycle …
24th January 2007
Today’s decision by the Swiss National Bank (SNB) to raise the target mid-point for the 3 month Libor by 25bps to 2.0% came as no surprise whatsoever. After all, the press statement accompanying its last interest rate decision in September stated that a …
14th December 2006
The Norges Bank hiked interest rates by 25bps to 3.5% today. This marks the seventh step in thetightening cycle which began in June 2005 and keeps rates tidily in line with those of the euro-zone.(See Chart 1.) It would have been a major surprise if the …
13th December 2006
The Norges Bank hiked interest rates by 25bps to 3.25% today. This marks the sixth step in the tightening cycle which began in August 2005 and keeps rates tidily in line with those of the euro-zone. (See Chart.) It would have been a major surprise if the …
1st November 2006
It came as no surprise at all that the Swiss National Bank (SNB) today raised rates by a further 25bps (bringing the mid-point of its target range for the three month Libor to 1.75%). After all, the SNB had signalled a further tightening following its …
14th September 2006
Today’s decision by the Swiss National Bank (SNB) to raise the target mid-point for the 3 month Libor by 25bps to 1.5% came as very little surprise. Like the latest rise in ECB rates, today’s hike followed similar moves in December and March and is …
15th June 2006
