ECB, Riksbank Hold Rates Steady as BOE Reduces Borrowing Costs

Three European central banks delivered interest rate decisions today that met expectations among economists. The European Central Bank and Sweden’s Riksbank kept borrowing costs unchanged after inflation came under control, while the Bank of England cut rates by a quarter point.

The ECB and Riksbank decisions were taken against the backdrop of firmer economic growth and stabilizing price pressures, with both signaling a cycle of rate cuts has come to an end. The BOE, meanwhile, is navigating higher inflation and a stuttering economy.

BOE Governor Andrew Bailey said rates are “on a gradual path downward,” and traders trimmed bets on further easing. The Riksbank raised its growth projection for next year to 2.9% and the ECB similarly said it anticipates firmer economic expansion among countries using the euro. —