SNB cuts interest rate 50 basis points, biggest reduction in nearly a decade

Published On Dec 12, 2024, 3:32 AM

The Swiss National Bank (SNB) has cut its interest rate by 50 basis points to 0.5%, marking the largest reduction in nearly a decade. This decision aims to maintain competitiveness against other central banks that are also likely to reduce rates. The move follows lower than expected inflation in Switzerland at 0.7% and aims to weaken the Swiss franc, which has been a concern for exporters facing weakened demand in Europe and China. Additionally, the SNB sees GDP growth between 1% and 1.5% for 2025 and has softened its forecasts for inflation.