Rate pauses in view on busy central banking day in Europe

FRANKFURT, Dec 14 (AFP): The European Central Bank and the Bank of England were on Thursday expected to pause rates again as inflation retreats, while markets cheered the US Federal Reserve's clear signal that it would start slashing borrowing costs in 2024.

On a bumper day for central banks in Europe, policymakers were holding their final meetings of 2023 -- a year marked by steep interest rate hikes to tame runaway consumer prices. The Swiss National Bank kicked off Thursday's action by keeping its key interest rate at 1.75 per cent.

SNB policymakers acknowledged that inflationary pressures had eased but warned that rising electricity prices and rents could yet trigger a renewed inflation jump.

Norway's Norges Bank bucked the trend by raising its main interest rate by a quarter per centage point to 4.5 per cent, warning that inflation remained too high.