Following Thursday's quarterly monetary policy assessment, the Swiss National Bank (SNB) cut the benchmark Sight Deposit Rate by 50 basis points (bps) to 0.50% from 1.00%.
The decision surprised markets, as they expected a 25 bps rate reduction to 0.75% in the quarter to December.
Summary of the SNB policy statement
Banks’ sight deposits held at the snb will be remunerated at the snb policy rate up to a certain threshold, and at 0% above this threshold.
Also remains willing to be active in the foreign exchange market as necessary.
SNB will continue to monitor the situation closely, and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term.
The forecast for Switzerland, as for the global economy, is subject to significant uncertainty.
Developments abroad represent the main risk.
Uncertainty about the economic outlook has increased in recent months.
The future course of economic policy in the us is still uncertain, and political uncertainty has also risen in Europe.
It cannot be ruled out that inflation could remain higher than expected in some countries.
In this environment, unemployment should continue to rise slightly, while the utilisation of production capacity is likely to decline somewhat.
Sees 2024 Swiss GDP at around 1.0% (previous forecast was for around 1.0%).
Sees 2024 inflation at 1.1% (previous forecast was for 1.2%).
Sees Q3 2027 inflation at 0.7%.
Sees 2025 inflation at 0.3% (previous forecast was for 0.6%).
Sees 2026 inflation at 0.8% (previous forecast was for 0.7%).
Sees 2025 Swiss GDP at around 1.0-1.5% (previous forecast was for around {1.5 percent).
Market reaction to the SNB interest rate decision
The USD/CHF pair rebounded firmly to test 0.8900 in a knee-jerk reaction to the SNB interest rate decision before easing to 0.8875, where it now wavers. The pair is down 0.48% on the day.
Swiss Franc PRICE Today
The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.18% | -0.15% | -0.14% | -0.18% | -0.62% | -0.34% | 0.29% | |
| EUR | 0.18% | 0.03% | 0.03% | 0.00% | -0.43% | -0.16% | 0.47% | |
| GBP | 0.15% | -0.03% | 0.02% | -0.03% | -0.47% | -0.19% | 0.44% | |
| JPY | 0.14% | -0.03% | -0.02% | -0.05% | -0.48% | -0.24% | 0.43% | |
| CAD | 0.18% | -0.01% | 0.03% | 0.05% | -0.44% | -0.16% | 0.47% | |
| AUD | 0.62% | 0.43% | 0.47% | 0.48% | 0.44% | 0.29% | 0.91% | |
| NZD | 0.34% | 0.16% | 0.19% | 0.24% | 0.16% | -0.29% | 0.64% | |
| CHF | -0.29% | -0.47% | -0.44% | -0.43% | -0.47% | -0.91% | -0.64% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to recovery gains above 1.0500 ahead of ECB policy announcements
EUR/USD holds the rebound above 1.0500 in the European session on Thursday amid a broad US Dollar retreat. However, the upside appears capped amid expectations for more ECB rate cuts in 2025. ECB policy announcements and Lagarde's press conference are on tap.
GBP/USD pulls back to 1.2750 as markets turn cautious
GBP/USD is pulling back to near 1.2750 in the European session on Thursday as traders turn cautious. The pair reverses earlier gains even as the US Dollar corrects downwards. The focus remains on the US PPI and Jobless Claims data.
Gold price sits near one-month high on Fed rate cut optimism and softer USD
Gold price seems to have stabilized following good two-way price swings and trades around the $2,720 area during the early European session, just below the highest level in more than a month touched earlier this Thursday.
European Central Bank set to cut interest rates again amid slow economic growth
The European Central Bank is expected to cut benchmark interest rates by 25 bps at the December policy meeting. ECB President Christine Lagarde’s presser will be closely scrutinized for fresh policy cues.
BTC faces setback from Microsoft’s rejection
Bitcoin price hovers around $98,400 on Wednesday after declining 4.47% since Monday. Microsoft shareholders rejected the proposal to add Bitcoin to the company’s balance sheet on Tuesday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.