Central bank decisions - SNB, Norges Bank, CBRT

Summary:

• SNB cuts inflation projections

• Norges Bank points to a rate hike in March

• CBRT leaves policy settings unchanged

Over the past hours we got monetary policy decisions from three central banks from Switzerland, Norway and Turkey. Neither of them decided to change interest rates though. Below we present the most important points.

SNB:

• Rates unchanged

• SNB will remain active in the FX market if necessary

• CHF remains highly valued

• 2019 CPI seen at 0.5% (0.8% previously), 2020 CPI at 1% (1.2%)

• SNB sees GDP growth at around 2.5% this year and around 1.5% next year

Norges Bank:

• Rates unchanged

• Spare capacity has gradually diminished

• Capacity utilization seems to be close to a normal level

• If rates hold unchanged wage inflation may accelerate and financial imbalances could build up

• Uncertainty around higher rates warrants a cautious approach to interest rate setting

• Balance of risks implies a gradual rate hikes in the years ahead

CBRT:

• Rates unchanged

• Recent data has shown that rebalancing trend in the economy has become more noticeable

• Slowdown in economic activity continues