The Fed vs Inflation

 

 

Michael Probst / AP  

 

The Fed vs Inflation  

Wide fall among European banks after Fed announcement 

 

Bank shares in Europe fall on Thursday morning after the US Fed's interest rate announcement on Wednesday - where the central bank downplayed its guidance on long-term interest rate developments. In Sweden, the big banks, where Handelsbanken, which is traded without dividends, stands out, are clearly down with falls of 3 to 4 percent.  

 

European government bond yields also react to the Fed announcement. During this morning's trading, they are sharply down. 

 

Thursday is characterized by more central bank announcements. Switzerland and Norway were the first to increase. At 1 pm, the Bank of England is expected to raise interest rates and from a Swedish perspective, Riksbank Governor Erik Thedéen will speak about his "view on monetary policy" at 3 pm, reports Direkt.

 

Ekonomi

Schweiz centralbank höjer räntan – trots bankdramat

Economy  

Switzerland's central bank raises interest rates – despite the banking drama 

The Swiss central bank raises the key interest rate by 50 basis points to 1.5 percent. This despite the recent turmoil linked to Credit Suisse, writes CNBC.  

"It cannot be ruled out that further interest rate increases may be needed to secure price stability in the medium term," writes the Swiss National Bank.  

The increase, the fourth in a row, is in line with the majority of analysts' expectations. However, some did not rule out an increase of only 25 points, writes Blick.