Switzerland’s central bank lowered its key interest for a fifth straight meeting, while its Swedish counterpart left rates unchanged for the first time since mid-2024.
The Bank of England kept interest rates steady, as major economies confront a nasty mix of faltering economic growth, rising inflation and tariff threats.
Higher U.S. tariffs on imports are set to slow economic growth and push inflation higher around the world, with further increases threatening an even more severe downturn.
Ukraine’s economy will be hampered by attacks on its electricity network this year, but could strengthen in 2026 if fighting stops, the European Bank for Reconstruction and Development said.
Europe will likely have to spend hundreds of billions to prepare to defend itself without U.S. help, and will have to find ways to do that without spooking bond investors.
Supply constraints rather than soft demand caused recent weakness in the U.K. economy, suggesting to BOE member Megan Greene that borrowing costs will have to stay restrictive to tame inflation.
The BOE should continue to restrain economic activity to ensure that households and businesses don’t act in ways that would prolong a coming pickup in inflation, the Monetary Policy Committee member said.