World Business Report Central bankers wait and see
Jun 19, 2025
Susanna Streeter, Head of Money and Markets at Hargreaves Lansdown, dives into the challenges central banks face with rising prices and interest rates. She discusses recent decisions from banks in Switzerland, Norway, and the US, emphasizing a cautious financial outlook. The conversation also explores Namibia’s push for investment, Thailand's casino plan to enhance tourism, and the booming market for military drones showcased at Denmark’s tech show—all while navigating a complex global economic landscape.
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Global Central Banks' Divergent Rates
- Central banks worldwide are facing uncertainty about economic growth and inflation, leading to different interest rate decisions. - Countries like Norway and Switzerland cut rates due to deflation risks, while the UK and US held steady amid sticky inflation and uneven growth.
Domestic vs Global Economic Pressures
- Central banks must balance global economic pressures and their own domestic conditions when setting policies. - Inflation, wage growth, and energy prices vary widely, shaping different strategies in each country.
Stagflation Risks Persist
- Inflation remains sticky alongside slowing growth, raising stagflation concerns in some economies. - Central banks pause rate changes to assess these conflicting signals before easing monetary policy.