FOREX TradingCharts.com

Financial News: Swiss Central Bank Lowers Policy Rate By 25

Swiss Central Bank Lowers Policy Rate By 25 Bps

06/20/2024 - 04:30:00 (RTTNews)

(RTTNews) - The Swiss National Bank lowered its key policy rate by 25 basis points for the second consecutive meeting on Thursday, citing easing underlying inflationary pressures.

The policy board headed by Thomas Jordan decided to cut the policy rate to 1.25 percent from 1.50 percent. The new rate will take effect on June 21.

The bank had unexpectedly reduced its rate by a quarter point at the March meeting and became the first major central bank to ease the policy in the current cycle.

Banks' sight deposits held at the central bank will be remunerated at the SNB policy rate up to a certain threshold, and at 0.75 percent above this threshold, the bank said today.

"With today's lowering of the SNB policy rate, the SNB is able to maintain appropriate monetary conditions," the bank said.

The SNB repeated that it is willing to be active in the foreign exchange market as necessary.

Capital Economics' economist Adrian Prettejohn said the SNB is unlikely to cut rates again this year as inflationary pressures remain quite sticky.

The bank downgraded inflation projections for the forecast period due to somewhat lower second-round effects. The inflation outlook for this year was trimmed to 1.3 percent from 1.4 percent and that for 2025 was lowered to 1.1 percent from 1.2 percent.

The outlook for 2026 was reduced to 1.0 percent from 1.1 percent.

Regarding economic growth, the SNB said gross domestic product is set to grow around 1 percent this year. Unemployment is likely to continue to rise marginally and the utilization of production capacity is expected to decline slightly. For next year, the bank projected economic growth of around 1.5 percent supported by somewhat stronger demand from abroad.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


New Zealand Trade Data Due On Monday (07 min(s), 51 sec(s) ago)
(RTTNews) - New Zealand will on Monday release June figures for imports, exports and trade balance ...Full Story»

Malaysia Economy Expands At Fastest Pace Since Late 2022 (09 hr(s), 16 min(s), 51 sec(s) ago)
(RTTNews) - Malaysia's economy posted its fastest growth in six quarters with strong support f ...Full Story»

Eurozone Inflation Expectations Remain Unchanged (09 hr(s), 44 min(s), 51 sec(s) ago)
(RTTNews) - Eurozone inflation expectations for this year and next year remained unchanged, the Su ...Full Story»

Philly Fed Index Jumps Much More Than Expected In July (10 hr(s), 19 min(s), 51 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing growth ...Full Story»

Philly Fed Index Indicates More Widespread Growth In July (10 hr(s), 19 min(s), 51 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing growth ...Full Story»

Italy Current Account Surplus Rises In May (11 hr(s), 13 min(s), 51 sec(s) ago)
(RTTNews) - Italy's current account surplus increased in May from the previous year, the Bank ...Full Story»

UK Government Borrowings Overshoot Estimate (11 hr(s), 44 min(s), 51 sec(s) ago)
(RTTNews) - The bigger-than-expected UK public sector net borrowing in June highlights the challen ...Full Story»

Eurozone Current Account Surplus Remains Unchanged (12 hr(s), 52 min(s), 51 sec(s) ago)
(RTTNews) - The euro area current account surplus remained unchanged in May, the European Central ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

New Zealand Trade Data Due On Monday

07/21/2024 - 18:03 PM (RTTNews)
(RTTNews) - New Zealand will on Monday release June figures for imports, exports and trade balance ...Full Story>>

Malaysia Economy Expands At Fastest Pace Since Late 2022

07/19/2024 - 08:54 AM (RTTNews)
(RTTNews) - Malaysia's economy posted its fastest growth in six quarters with strong support f ...Full Story>>

Eurozone Inflation Expectations Remain Unchanged

07/19/2024 - 08:26 AM (RTTNews)
(RTTNews) - Eurozone inflation expectations for this year and next year remained unchanged, the Su ...Full Story>>

Philly Fed Index Indicates More Widespread Growth In July

07/19/2024 - 07:51 AM (RTTNews)
(RTTNews) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing growth ...Full Story>>

Philly Fed Index Jumps Much More Than Expected In July

07/19/2024 - 07:51 AM (RTTNews)
(RTTNews) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing growth ...Full Story>>

Do not sell my personal information

Copyright © 2024. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.