CAIRO: While the Swiss central bank is planning a 50 to 75 basis points rate hike in September, the US Federal Reserve officials indicated their intention to stick with the 75 bps rate increase at their meeting this month. The UK is said to increase its public sector workers’ pay by an average of 5 percent.
Swiss central bank plans at least 50 bps rate hike in September
The Swiss National Bank is currently planning to raise interest rates by 50 or 75 bps in its next scheduled monetary policy announcement in September, a Swiss newspaper reported on Saturday, citing one or more people involved in the matter.
Last month, the central bank raised its policy rate for the first time in 15 years. Chairman Thomas Jordan said soon afterward that ongoing inflationary pressure meant further tightening would likely be needed.
Fed may stick to a 75 bps rate hike in July
US Federal Reserve officials signaled Friday that they would likely stick with a 75 bps interest rate increase at their July 26-27 meeting. However, a recent high inflation reading could still warrant larger increases than anticipated later in the year.
Data released earlier this week showing inflation had accelerated to an annual rate of 9.1 percent in June raised the possibility the Fed might opt for a larger 1 percentage point rate hike at its next session.
But comments from Fed officials on Friday, coupled with data showing economic activity holding up and the inflation outlook among consumers improving, undercut some of the urgency for a larger increase.
UK public sector workers to get 5% pay rise
British Prime Minister Boris Johnson will offer millions of public sector workers pay raises averaging 5 percent next week, the Financial Times reported on Friday, citing unnamed government ministers.
Annual pay reviews for almost half of public sector workers — including teachers, nurses, police, prison staff, civil servants and the armed forces — are due shortly.
The FT reported one senior minister saying that the government would accept the recommendation of independent pay review bodies — which are likely to recommend raises of around 5 percent.
A spokesperson for Johnson’s office declined to comment on the report.
(With input from Reuters)