All articles tagged with #swiss franc
The Swiss National Bank has lowered interest rates to zero to combat a surging Swiss franc and low inflation, marking the first time the country has set rates at zero since experimenting with negative rates, amid global trade tensions and a strong safe-haven currency.
The Swiss National Bank has cut interest rates to 0%, entering an era of zero or potentially negative rates, to counteract deflation and a strong Swiss franc, which has been suppressing inflation. While this move aims to stabilize prices, it raises concerns about the impact on savers, banks, and financial stability, with some analysts predicting rates could go as low as -0.75%.
The Swiss National Bank (SNB) has cut its key interest rate by 50 basis points to 0.5%, exceeding expectations of a smaller reduction, in response to subdued inflation and a strong Swiss franc. This marks the fourth rate cut this year as the SNB aims to manage currency appreciation and declining consumer prices. The bank's new inflation forecast predicts low inflation rates through 2026, with further rate cuts anticipated. The franc's strength continues to challenge Swiss exports amid weak global demand.
Swiss National Bank (SNB) chairman Thomas Jordan stated that the rate cut is not a parting gift and emphasized the independence of their decisions from other central banks. The SNB does not provide forward guidance on future interest rates and will reassess the situation in three months. Despite the franc's recent weakening, the SNB may intervene to stabilize the currency if necessary, as they did last year to control imported inflation.
The US dollar is on track for its longest losing streak in 2.5 years after the Federal Reserve signaled a pause in interest rate hikes, with futures implying a 50% chance of one more quarter-point hike. The Swiss franc edged higher after the Swiss National Bank raised its policy rate by 50 basis points, while the Bank of England is under pressure to raise rates after a surprise rise in British inflation. The Norwegian crown strengthened after the Norges Bank raised its interest rate by 25 bps to 3%, and the Australian and New Zealand dollars rose. Financial markets have been roiled by wavering confidence in banks globally following a run on Silicon Valley Bank two weeks ago and the sudden demise of Credit Suisse.