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 cut its key interest rate by 25 basis points to 1.25% on Thursday, continuing to cut interest rates at a time when sentiment about monetary policy easing in major economies remains mixed.
Two-thirds of economists surveyed by Reuters expected The Swiss National Bank will decide to cut interest rates by 25 basis points to 1.25%.
Inflation in the country Flat at 1.4% in May After April’s gains, the full-year 2024 average is expected to be the same, According to the latest forecasts from the Swiss National Bank. The Swiss National Bank expects sports-adjusted gross domestic product to reach 1.2% this year. It expected support from exports, but continued pressure from “low industrial production capacity utilization and high financing costs” could dampen investment.
In a report on June 14, Nomura analysts described a possible rate cut as a “finely balanced decision” and said that “underlying inflation momentum remains weak, which may strengthen the SNB’s confidence that through policy inflation will converge to the midpoint of inflation levels.” inflation target. “
Swiss interest rates have fallen sharply among G10 democracies, second only to Japan. It became the first major economy to cut interest rates in late March, with the European Central Bank following suit earlier this month.
But the Fed hasn’t blinked yet, and market participants will be watching later on Thursday to see whether the Bank of England takes action to cut interest rates after lowering its target to 2% for the first time in nearly three years.
This breaking news story is being updated.
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