For the second time in a row: SNB leaves key interest rate at 1.75 percent

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There is no change in December: The Swiss National Bank (SNB) leaves the interest rate at 1.75 percent. Therefore, it remains at the level it was in July. Central bank boss Thomas Jordan, 60, did not raise interest rates in September.

Inflationary pressure eased slightly in the last quarter, the SNB said in a statement on Thursday. But uncertainty remains high. In order to ensure price stability in the medium term, it will closely monitor the developments and make adjustments to monetary policy if necessary.

Inflation has fallen slightly since September

Economists almost unanimously expected monetary authorities to leave the SNB’s interest rate at 1.75 percent once again. In September, the majority had expected a further increase and the SNB was surprised. The central bank left the interest rate unchanged for the first time since the start of the boom cycle.

Before that, the SNB had put an end to the years-long period of negative interest rates in Switzerland by increasing the interest rate from -0.75 percent to the current level in just five steps since June 2022.

Since the SNB’s last monetary policy review in September, inflation in Switzerland has fallen slightly again. It was last at 1.4 percent, back within the SNB’s target range of 0 to 2 percent.

The US Federal Reserve also paused interest rates

On Wednesday, the US Federal Reserve left the interest rate unchanged at 5.25 to 5.5 percent. This is already the third interest rate cut in a row. Finally, central bank boss Jerome Powell (70) increased interest rates by 0.25 percentage points in July.

The Fed and SNB will be followed by the European Central Bank (ECB) on Thursday afternoon. Unlike the other two banks, it increased the policy rate by 0.5 points to 4.5 percent in September. (sak/SDA)

Source :Blick