Swiss National Bank Lowers Interest Rate to 1.0%

On September 26, 2024, the Swiss National Bank (SNB) cut its key interest rate by 25 basis points to 1.0%, marking its third reduction this year and the lowest level since early 2023. This decision was influenced by a significant decrease in inflation, which fell to 1.1%, and the appreciation of the Swiss franc, which has presented challenges for exporters. The SNB noted that the current monetary easing aligns with similar actions taken by the European Central Bank and the U.S. Federal Reserve. The bank anticipates that further rate cuts may be necessary to maintain price stability in the medium term. This rate adjustment coincides with the conclusion of SNB Chairman Thomas Jordan's 12-year tenure. Analysts suggest that continued appreciation of the franc could lead to further interventions if necessary.