This week, the Swiss National Bank (SNB) announced a record quarterly profit for the first quarter of 2024. The result was largely predicted after the SNB made a surprise interest rate cut, which led to a weaker Swiss Franc.
Switzerland’s central bank is unusual. It is privately owned (mainly by a German citizen) but distributes much of its profit to the nation’s cantons and federal government. This feature adds to the politicisation of monetary policy in Switzerland as it increases the likelihood voters and politicians view the bank primarily as a cash generator rather than the custodian of a stable inflation.
Bumper profits of CHF 58.8 billion in the first quarter of 2024 resulted mainly from a weakening Swiss Franc. Relative to the Euro, the Swiss Franc lost around 5% of its
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