Swiss National Bank lowers key interest rate to 0.25%
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Swiss National Bank lowers key interest rate to 0.25%
The Swiss National Bank (SNB) has lowered the key interest rate by a further 25 basis points. It now stands at 0.25%.
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This is the fifth interest rate cut in a row. In March, June and September 2024, the SNB lowered the key interest rate by 25 basis points each time, and then by as much as 50 basis points last December.
Previously, the central bank had raised the key interest rate from -0.75% in June 2022 to 1.75% in just five steps. The reason for this was the sharp rise in inflation, which has since fallen again significantly.
Economic outlook more uncertain
With today’s interest rate hike, the SNB is ensuring that monetary conditions remain appropriate in view of the weak inflationary pressure and the increased downside risks for inflation, the SNB explained in a press release on Thursday. In addition, the economic outlook for Switzerland has become significantly more uncertain.
The SNB will now continue to monitor the situation closely. If necessary, it will adjust its monetary policy to ensure that inflation remains within the price stability range of 0-2% in the medium term. If necessary, the SNB is also prepared to remain active on the foreign exchange market.
The current decision comes as no surprise. Most economists had expected it in advance.
Translated from German by DeepL/jdp
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