> The Swiss National Bank unexpectedly cut its key interest rate by 25 basis points, moving months ahead of global peers as policymakers try to prevent gains in the franc.
>
> Officials in Zurich lowered their benchmark to 1.5%, the first such reduction for one of the world’s 10 most-traded currencies since the pandemic abated. While some investors were betting on such a cut, most economists predicted the rate would stay unchanged at least until June.
>
> **The franc tumbled after the decision, falling 1% against the euro to its weakest level since July 2023. It dropped 1.2% against the dollar to a fresh four-month low.**
>
> “The easing of our monetary policy has been made possible because the fight against inflation over the past 2 1/2 years has been effective,” President Thomas Jordan said on Thursday. The SNB unveiled a lower forecast for consumer-price gains, seeing them no higher than 1.5% through 2026.
>
> The SNB’s move foreshadows possible easing later this year by the Federal Reserve and European Central Bank, taking upward pressure off the franc and lessening the need for officials to resort to interventions that might further swell their large balance sheet.
>
> By acting now, Jordan and his colleagues are avoiding the prospect of waiting for such global counterparts to move first. The SNB’s quarterly calendar features only half as many scheduled announcements as the Fed and ECB, and its next decision in June takes place after them.
>
> The SNB “has used its leeway to support economic development by cutting interest rates early on,” said Raiffeisen Switzerland economist Alexander Koch. “However, the comparatively moderate level of interest rates, together with the robust economy, means that no overly aggressive easing should be expected in the further course of the year.”
soooo, ppl can apply for rent reduction?))
So, you think the franc will continue weakening or it’s gonna stabilize on the current levels more or less?
[deleted]
RemindMe! 3 Months
Remindme! 3 months
RemindMe! 3 months
Ignore silly talks of a week franc. Look at any currency Vs the franc over the last 30 years. The franc is insanely strong. My mum told me that 50 years ago 8 francs were equal to a pound now it’s like 1.2.
9 comments
> The Swiss National Bank unexpectedly cut its key interest rate by 25 basis points, moving months ahead of global peers as policymakers try to prevent gains in the franc.
>
> Officials in Zurich lowered their benchmark to 1.5%, the first such reduction for one of the world’s 10 most-traded currencies since the pandemic abated. While some investors were betting on such a cut, most economists predicted the rate would stay unchanged at least until June.
>
> **The franc tumbled after the decision, falling 1% against the euro to its weakest level since July 2023. It dropped 1.2% against the dollar to a fresh four-month low.**
>
> “The easing of our monetary policy has been made possible because the fight against inflation over the past 2 1/2 years has been effective,” President Thomas Jordan said on Thursday. The SNB unveiled a lower forecast for consumer-price gains, seeing them no higher than 1.5% through 2026.
>
> The SNB’s move foreshadows possible easing later this year by the Federal Reserve and European Central Bank, taking upward pressure off the franc and lessening the need for officials to resort to interventions that might further swell their large balance sheet.
>
> By acting now, Jordan and his colleagues are avoiding the prospect of waiting for such global counterparts to move first. The SNB’s quarterly calendar features only half as many scheduled announcements as the Fed and ECB, and its next decision in June takes place after them.
>
> The SNB “has used its leeway to support economic development by cutting interest rates early on,” said Raiffeisen Switzerland economist Alexander Koch. “However, the comparatively moderate level of interest rates, together with the robust economy, means that no overly aggressive easing should be expected in the further course of the year.”
soooo, ppl can apply for rent reduction?))
So, you think the franc will continue weakening or it’s gonna stabilize on the current levels more or less?
[deleted]
RemindMe! 3 Months
Remindme! 3 months
RemindMe! 3 months
Ignore silly talks of a week franc. Look at any currency Vs the franc over the last 30 years. The franc is insanely strong. My mum told me that 50 years ago 8 francs were equal to a pound now it’s like 1.2.
Look at the 5 year trends lol.
Thank god, finally