Archive

SNB: 50bp Rate Cut To 0.5% (Consensus 0.75%) in Dec-24

• The SNB cut its policy rate by 50 basis points to 0.5%, surprising consensus expectations for a lesser reduction because of lower-than-expected inflation and subdued economic conditions.
• Inflation projections remain well within the price stability range, with medium-term forecasts reflecting subdued second-round effects, though heightened global and domestic uncertainties may influence future rate decisions.
• The SNB is flexibly prepared to keep easing if inflationary pressures weaken further while maintaining readiness to intervene in foreign exchange markets to manage franc appreciation.

SNB - 25bp Rate Cut To 1.00% (Consensus 1%) in Sep-24

• The SNB cut its policy rate to 1.0%, matching the consensus, reflecting reduced inflationary pressures mainly due to franc appreciation and energy price reductions.
• Inflation forecasts have been lowered, with the SNB projecting 1.2% for 2024 and 0.6% for 2025, suggesting further rate cuts may be necessary to maintain price stability.
• While domestic growth remains solid, risks from the global economy, currency appreciation, and geopolitical tensions continue to weigh on the medium-term outlook.

Switzerland Policy Rate 1.25% in Jun-24

• The SNB cut its policy rate by 25 basis points to 1.25%, in line with consensus expectations, to support economic activity while maintaining price stability.
• Inflation dynamics, global economic conditions, and domestic economic performance will influence future interest rate decisions, which focus on ensuring inflation remains within the target range.
• The SNB remains vigilant and flexible, prepared to adjust monetary policy as necessary to respond to evolving economic indicators and inflation developments.

Switzerland Unemployment Rate 2.4% in May-24

- Switzerland's unemployment rate increased to 2.4% in May 2024 (seasonally adjusted), reflecting an ongoing deviation from average levels and indicating potential labour market weakness.
- Mixed economic indicators, including negative consumer confidence and contracting manufacturing activity, contrast with modest GDP growth and robust retail sales, highlighting underlying economic challenges.