Swiss National Bank lowers key interest rate by 0.5%

SNB lowers key interest rate by 0.50 percent Keystone-SDA

The Swiss National Bank (SNB) has lowered its benchmark interest rate by a surprisingly hefty 0.5%. The Swiss reference rate now stands at 0.5%.

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Further interest rate hikes are possible: the SNB will continue to monitor the situation closely, according to the communiqué published on Thursday.

+ Switzerland navigates own course through inflation maze

If necessary, the SNB will adjust its monetary policy to ensure that inflation remains within the price stability range of 0% to 2% in the medium term. If necessary, the SNB is also prepared to remain active on the foreign exchange market.

After the last monetary policy assessment, the choice of words was even clearer. At that time, it was stated that further interest rate cuts could be necessary in the coming quarters.

The underlying inflationary pressure has decreased again this quarter, according to the current interest rate move. With today’s easing of monetary policy, the SNB is taking this development into account.

The SNB had already lowered the key interest rate by 25 basis points in March, June and September. Previously, the central bank had raised the key interest rate from -0.75% in June 2022 to 1.75% in just five steps and then left it unchanged twice.

Translated from German by DeepL/mga

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