The Helvetic central bank reduced its key interest rate by 0.25% to 1.50%. The big Swiss financiers are the first to relax their policy in developed economies. Inflation is contained in Switzerland, at only 1.2% in February. The Swiss monetary authorities have also highlighted the need to control inflationary pressures to justify the decrease in rent.
The annual price increase has aligned with the inflation target of 0 and 2% over the past nine months. According to official forecasts, inflation averages 1.4% this year, 1.2% in 2025 and 1.1% in 2026. In this context, the Swiss National Bank will undoubtedly continue to reduce its key interest rate in the coming months, especially since it wants to avoid a too-strong franc.
The Swiss financial authorities worry about the appreciation of the Swiss franc, which was quoted several times in the statement announcing monetary easing. A too-strong franc penalises the country’s exports and economic activity. As the European Central Bank and the US Federal Reserve prepare for a rate cut in June, the surprise fall in Swiss interest rates in March and the announcement of other upcoming movements should prevent a further surge in the franc's value.
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