SNB: National Bank cuts key interest rate by 0.5 percent

Today serena. New Thursday 12th December 2024 03:53 AM REPORT

Update followsFinancial situation is improving –

National Bank cuts key interest rate by 0.5 percent

The new SNB boss Martin Schlegel dares to take a big interest rate step in his first decision. The key interest rate is now 0.5 percent.

Published today at 9:32 am

SNB boss Martin Schlegel.

Photo: Ennio Leanza (Keysdtone)

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The Swiss National Bank (SNB) has cut its key interest rate again. The SNB key interest rate falls by 0.50 percentage points and is now at 0.50 percent, as the central bank announced on Thursday. It is the fourth reduction in a row. At 10 a.m. the SNB will comment on its decision in a media conference. You can follow the stream here.

In March 2024, the SNB lowered the key interest rate for the first time by 0.25 percentage points. Two further cuts of 0.25 percentage points followed in June and September. Now the National Bank is lowering the key interest rate for the first time by a large interest rate step of half a percentage point. The central bank had previously raised the key interest rate from -0.75 percent to 1.75 percent in just five steps from June 2022 and then left it unchanged twice.

Further interest rate steps are possible

The National Bank will continue to monitor the situation closely, according to the communiqué published on Thursday. The SNB will adjust monetary policy if necessary to ensure that inflation remains within the price stability range of 0 to 2 percent in the medium term. If necessary, the National Bank is also still prepared to be active in the foreign exchange market.

After the last assessment of the situation, the choice of words was even clearer. At the time it was said that further interest rate cuts might be necessary in the next few quarters.

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