'Switzerland Follows Suit with Second Interest Rate Cut as Global Economies Differ on Monetary Policy Easing'
Money | June 20, 2024, 2:43 a.m.
The Swiss National Bank recently announced a 25-basis-point cut to its key interest rate, bringing it down to 1.25%. Despite mixed sentiments on monetary policy easing globally, two-thirds of economists had predicted this move. Following the decision, the Swiss franc weakened against the Euro and U.S. dollar. The SNB's inflation forecast for 2024-2026 remains moderate, with economic growth projected at 1% this year and 1.5% in 2025. Analysts suggest that another rate cut may come in September, potentially impacting the Swiss franc's position. While Switzerland already has one of the lowest interest rates among major economies, uncertainties loom over whether the SNB will proceed with further cuts. As other central banks like the U.S. Federal Reserve and the Bank of England assess their next moves, the global financial landscape continues to evolve.