Swiss National Bank Cuts Interest Rate by 50 Points

The Swiss National Bank (SNB) has executed its largest interest rate cut in nearly a decade, reducing the rate by 50 basis points to 0.5%, in response to low inflation and to preempt anticipated cuts by other central banks. This decision, made under new Chairman Martin Schlegel, marks a shift from the previous leadership's smaller cuts, with over 85% of economists having expected only a 25 basis point reduction. The SNB aims to control the rising value of the Swiss franc while maintaining economic stability amid global uncertainties. Inflation in Switzerland has decreased to 0.7%, falling within the SNB's target range, which allows for this aggressive monetary policy adjustment. The bank will continue to monitor economic conditions closely and adjust its policies to ensure price stability. The last significant cut prior to this was in January 2015 when the SNB ended its euro minimum exchange rate policy.