Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Swiss central bank cuts rate for second straight time

Home Business Swiss central bank cuts rate for second straight time
Swiss central bank cuts rate for second straight time

ZURICH – The Swiss National Bank announced yesterday its second straight interest rate cut, after becoming in March the first Western central bank to slash borrowing costs that had been raised to battle inflation. The SNB said in a statement that it was lowering the policy rate by 0.25 percentage points to 1.25%.

The bank also lowered its average annual inflation forecast for 2024 to 1.3% from 1.4% previously.

“The underlying inflationary pressure has decreased again, compared to the previous quarter,” the statement said.

“With today’s lowering of the SNB policy rate, the SNB is able to maintain appropriate monetary conditions.”

Analysts had been divided about whether the bank would cut rates again or stand pat, as inflation had risen again in April and May, reaching 1.4% after falling to 1% in March.

Central banks worldwide ramped up borrowing costs in recent years to control inflation, which surged when economies emerged from Covid pandemic lockdowns, and accelerated after energy producer Russia invaded agricultural power Ukraine in early February 2022.

Since the SNB’s March decision, the European Central Bank followed suit in June, while the US Federal Reserve is expected to introduce only one rate cut later this year.

The Bank of England was widely expected to keep its rates unchanged later yesterday, a similar decision taken by Norway’s central bank earlier in the day.  

– Nampa/AFP