– National Bank lowers the key interest rate to 1.5%
The Swiss National Bank makes a surprising change in monetary policy and lowers its key interest rate.
Published: March 21, 2024, 9:31 a.m. Updated: March 21, 2024, 2:35 p.m
Image: Michael Buholzer/Keystone
Initial assessment by Andreas Neinhaus at 9.45 a.m
The Swiss National Bank has cut its key interest rate from 1.75 to 1.5%, surprising the majority of “SNB watchers”. The step is courageous because it loosens the monetary policy reins on its own in an internationally isolated manner. The low inflation in Switzerland justifies this decision. Inflation has been well below 2% since June last year, which the SNB equates with price stability. In the inflation forecast published today, the National Bank assumes that the inflation rate will no longer rise above 1.5% by the end of the reporting period in 2026, even with the currently lower key interest rate.