Today, Thursday, during the Swiss National Bank policy rate conference, a cut in it’s main interest rate was announced by 25 basis points to 1.50% from 1.75%.
This surprise move would be the central bank’s move in tackling inflation. This is amid other big economies battling the fear and effect of inflation. With Japan leaving a negative rate era and U.S holding on to 5.5%
Long serving Chairman Thomas Jordan, said he would step down by September 2024.
The SNB stated “The easing of monetary policy has been made possible because the fight against inflation over the past two and a half years has been effective.”
Although, the European Central bank us expected to make it’s first reduction in borrowing costs in June after holding up it’s interest rates earlier in March.
The U.S Federal reserve during Wednesday, 20 March FOMC statement, left it’s benchmark interest rate unchanged but retina it’s outlook for three cuts in borrowing costs this year.
“It’s a brave move to go before the ECB and Fed, although the SNB will not see it that way, and they probably believe the other central banks will also cut rates later this year.” Alessandro Bee, a UBS economist said.
