Sunday , October 6 2024
Home / le News / Swiss National Bank cuts interest rate

Swiss National Bank cuts interest rate

Summary:
On 26 September 2024, The Swiss National Bank (SNB) announced further eased its monetary policy by lowering its key rate for the third time in a row by 0.25% to 1%. SNB Bern © SNBThe SNB started cutting its key rate before the European Central Bank (ECB) and the US Federal Reserve (Fed). It first cut the rate in March 2024 from 1.75% to 1.50%, then again in June 2024 to 1.25%, and then this week to 1.00%. The Fed made its first cut in September 2024 from 5.25% to 5.00%. While the ECB cut for the first time in June 2024 from 4.00% to 3.75%, following with a further cut to 3.5% in September 2024. Inflationary pressure in Switzerland has fallen significantly of the recent quarter, something driven largely by a strong franc and falling oil and electricity prices, according to the bank.

Topics:
Investec considers the following as important: ,

This could be interesting, too:

Investec writes Swiss inflation dips below 1 percent for first time in three years

Investec writes Proposal to make Swiss motorways more expensive for foreigners

Investec writes Swiss health insurance set to rise further in 2025

Investec writes Swiss to vote on employee pension reform

On 26 September 2024, The Swiss National Bank (SNB) announced further eased its monetary policy by lowering its key rate for the third time in a row by 0.25% to 1%.

Swiss National Bank cuts interest rate
SNB Bern © SNB

The SNB started cutting its key rate before the European Central Bank (ECB) and the US Federal Reserve (Fed). It first cut the rate in March 2024 from 1.75% to 1.50%, then again in June 2024 to 1.25%, and then this week to 1.00%. The Fed made its first cut in September 2024 from 5.25% to 5.00%. While the ECB cut for the first time in June 2024 from 4.00% to 3.75%, following with a further cut to 3.5% in September 2024.

Inflationary pressure in Switzerland has fallen significantly of the recent quarter, something driven largely by a strong franc and falling oil and electricity prices, according to the bank. Annualised inflation at the end of August 2024 was 1.1%.

The SNB forecasts Swiss inflation will fall significantly in 2025 and 2026, predicting rates of 0.6% and 0.7% respectively. The SNB targets inflation between zero and 2%.

The SNB also said this week that it remains prepared to be active in the foreign exchange market if necessary.

More on this:
SNB announcement (in French) – Take a 5 minute French test now

For more stories like this on Switzerland follow us on Facebook and Twitter.

About Investec
Investec
Investec is a distinctive Specialist Bank and Asset Manager. We provide a diverse range of financial products and services to our niche client base.

Leave a Reply

Your email address will not be published. Required fields are marked *