Helena Lyng Blak
8 weeks ago

Swiss National Bank cuts rates in astonishing twist

The SNB surprised by cutting interest rates.
Swiss National Bank building
MDart10 / Shutterstock.com

Contrary to market expectations, the Swiss National Bank (SNB) cut its core interest rate on Thursday, getting ahead of its global peers.

The European Central Bank (ECB) is not expected to make its first rate cut until June, and the Fed has similarly left rates unchanged, despite expectations of three rate cuts in 2024.

The rate was cut by 25 basis points.

The SNB made the decision in response to declines in inflation and growth over the past 12 months, FXstreet writes.

Alongside cutting its key interest rate, the SNB also reduced its interest rate on sight deposits — deposits that one can withdraw from a bank with little to no notice — to 1.5%, as per Reuters.

This cut is the SNB’s first reduction in borrowing costs in nine years.

According to Bloomberg, the franc slumped following the decision. It fell 1% against the euro and 1.2% against the US dollar, reaching its weakest levels in eight and four months, respectively.


The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

3 days ago Europe Market Open: May 17, 2024 - European Stocks Start Lower Daily update from the European market open.
3 days ago Will Europe cut rates before US? Analyst Ulrik Simmelholt from Steno Research argues that the ECB should initiate rate cuts without fearing wider real rates spread with the USD, emphasizing the importance of commodity prices and energy dependencies over monetary policy in determining Euro strength.
3 days ago Crypto, Currently: May 17, 2024 - Mixed Signals in the Crypto Market Daily update the cryptocoin market.
3 days ago FX Daily: May 17, 2024 - Key Currency Movements and Analysis Daily update from the foreign exchange markets
4 days ago China Exporting Inflation Again: Global Markets on Alert Analyst Andreas Steno from Steno Research warns that China's rising industrial production and strategic resource stockpiling could trigger global inflationary pressures and impact market dynamics.
4 days ago EU Designates Booking as Gatekeeper; Opens Investigation Into X EU cracks down on Booking under Digital Markets Act, investigates other tech giants.
4 days ago Freddie Mac Proposes Unleashing Trillions to Stimulate US Consumption As U.S. excess savings diminish, Freddie Mac's new proposal might unlock vast consumer potential—could this be the spark for the next economic boom?