by 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.
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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%.
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.
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