A view of the Swiss National Bank (SNB) headquarters before a press conference on March 21, 2024 in Zurich, Switzerland.
Dennis Balibus | Reuters
The Swiss National Bank adopted its third easing monetary policy this year on Thursday, cutting its key interest rate by 25 basis points to 1.0%.
Thirty of 32 analysts polled by Reuters expected the rate cut, which would mark the third rate cut by the Swiss National Bank in 2024.
Back in March, it became the first major Western central bank to cut interest rates.
On the occasion of the third rate cut, the European Central Bank and the Federal Reserve also sent similar signals. Last week, the Federal Reserve took a long-awaited significant interest rate cut, cutting interest rates by 50 basis points. Domestically, Swiss inflation remains subdued, with the latest headlines showing an annual increase of 1.1% August.
The Swiss franc gained against major currencies on the back of the latest interest rate decision. The dollar and euro fell nearly 0.14% and 0.16% respectively against the Swiss coin.
The Swiss National Bank acknowledged its currency’s overall upward trend as a key factor in Thursday’s rate cut.
“Inflationary pressures in Switzerland have again fallen significantly compared with the previous quarter. Among other things, this decline reflects the appreciation of the Swiss franc over the past three months,” the company said in a statement.
“Today’s easing of monetary policy by the SNB takes into account the easing of inflationary pressures. Further cuts in the SNB’s policy rate may be necessary in the coming quarters to ensure medium-term price stability,” it added.
This breaking news story is being updated.
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