US Fed resumes easing path, other top central banks on hold

The US Federal Reserve has delivered its first rate cut since December, diverging from most other major central banks that have kept interest rates unchanged.

- 

The Bank of England kept rates steady on Thursday and the Bank of Japan followed on Friday, while expectations for further Eurozone rate cuts are fading.

Here’s where IO major central banks stand:

SWITZERLAND

The Swiss National Bank cut its key rate to O8 in June.

Investors have pondered whether a return to negative territory is likely, but markets now expect the SNB to hold rates when it meets next Thursday.

Chairman Martin Schlegel reiterated that the bar is high for a return to negative rates, but does not rule out such a move. Inflation holding above the bottom of the SNB’s 0-28 target band in August means traders do not anticipate negative rates soon.

CANADA

The Bank of Canada reduced its key rate to a three-year low of 2.58 on Wednesday, the first cut in six months, citing a weak jobs market and less concern about underlying price pressures.

It paused its easing campaign in March after reducing rates by a total of 225 basis points in nine months, starting in June last year. Markets price in a roughly 408 chance of another cut when the central bank meets again next month.

SWEDEN