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- The Swiss National Bank (SNB) is taking a major interest rate step and cutting the key interest rate surprisingly significantly by 0.5 percentage points.
- This means that the key interest rate is now 0.5 percent, as the central bank announced.
- The new SNB President Martin Schlegel is loosening the reins on his first interest rate decision. An interest rate cut had been expected in advance.
Further interest rate steps are possible: The National Bank will continue to monitor the situation closely, it says in its communiqué. 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.
Lower inflation pressure
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.
The SNB had already reduced the key interest rate by 25 basis points in March, June and September. 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.
SRF 4 News, 12.12.24, 10 a.m.;
sda/schp; schm
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