On 12 December, the Swiss National Bank (SNB) cut its key interest rate significantly by 50 basis points from 1.0% to 0.5%. This is the SNB’s response to the weakening economic situation, falling inflation rates and global uncertainties. The interest rate cut is intended to stimulate the economy and bring inflation back into the SNB’s target range.
Experts expect the measure to weaken the Swiss franc and boost lending; mortgages are also likely to become correspondingly more favourable. The SNB emphasised that further monetary policy adjustments may be necessary in order to continue to support the economy. The next monetary policy assessment will take place in March 2025.
