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08:35 · 12 December 2024

BREAKING: SNB unexpectedly cuts interest rates by 50bps; EURCHF rises 0.6% 🚨

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Current rate in Switzerland: 0,5%. A 25 basis point cut to 0.75% from 1.0% was expected. 

This comes as a surprise from the SNB, although of course we have the problem of very low inflation in Switzerland at the moment. The market had priced in a cut of 50 basis points in total over a three-month horizon and a halt at 0.5%. However, the desire to return to zero interest rates with a further problem of falling inflation cannot be ruled out. 

 
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