Swiss central bank makes a surprise cut to its key interest rate as others hold steady
The Swiss National Bank says it's trimming its key interest rate, a surprise move that makes Switzerland the first major financial center to announce a cut in recent months
GENEVA (AP) — The Swiss National Bank said Thursday that it is trimming its key interest rate, a surprise move that makes Switzerland the first major financial center to announce a cut in recent months.
Thomas Jordan, the outgoing SNB chairman, credited the central bank's push to rein in inflation in the wealthy Alpine country. The cut of a quarter of a percentage point, to 1.5%, will apply as of Friday.
“The easing of our monetary policy has been made possible because the fight against inflation over the past two and a half years has been effective,” he told reporters.
“For some months now, inflation has been back below 2%, and thus in the range we equate with price stability,” Jordan added. “According to our new forecast, inflation is also likely to remain in this range over the next few years.”
