Currency exchange rate data from financial news outlets like Bloomberg or Reuters

SNB Unexpectedly Cuts Rates by 50 Bps to 0.5% amid Decreasing Inflation Pressure

Dec 12, 2024, 01:21 PM

On December 12, 2024, the Swiss National Bank (SNB) unexpectedly halved its policy rate by 50 basis points to 0.5%, exceeding market expectations of a 25 basis-point reduction. This marks the central bank's largest rate cut in nearly a decade and the fourth cut in the current easing cycle. The SNB cited decreasing underlying inflationary pressures, revising its inflation forecasts down to 1.1% for 2024, 0.3% for 2025, and 0.8% for 2026. The bank also stated it is prepared to intervene in currency markets if necessary, aiming to intensify its defense of the Swiss franc. Following the announcement, the franc weakened by 0.5% against the euro, reaching a two-week low.