At the MPC meeting held on June 19th, the BoB held the policy interest rate steady at 1.9%, contrary to our expectation of a reduction. The Bank noted that monetary policy remains “accommodative”. while the inflation outlook is well within the parameters of the 3%-6% BoB inflation objective. For more details see Monetary Policy Decision -June 2025

The BoB MPC meeting came during a busy week for central banks on the monetary policy front. The US Federal Reserve and the Bank of England both maintained unchanged policy rates, while Norges Bank (Norway’s central bank) reduced its policy rate for the first time in five years. Meanwhile, the Swiss National Bank also reduced its policy rate, which is now zero percent and possibly heading for negative territory.