Exchange rate data from financial markets like Bloomberg or Reuters

SNB Surprises with 50 Basis Point Rate Cut to 0.5%, Largest in Nearly a Decade

Dec 12, 2024, 01:16 PM

The Swiss National Bank (SNB) surprised markets by cutting its key interest rate from 1% to 0.5%, the largest reduction in nearly a decade and marking the fourth consecutive meeting with a rate cut. The unexpected move is attributed to lower inflation projections for 2024 and 2025 and concerns over the strength of the Swiss franc impacting growth. The SNB views this as a front-loading of rate cuts rather than a signal that negative rates will return soon. Following the announcement, the Swiss franc fell to a two-week low against major currencies, though it did not weaken significantly due to the already low interest rate environment.