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Swiss National Bank (SNB), in Bern, Switzerland, on Thursday, December 12, 2024.
Stefan Wermuth | Bloomberg | Getty pictures
SWISS National Bank has reduced interest rates with 25 main points to 0% – added to the concerns about a potential turn to negative degrees.
Reducing ahead of the decision, the chances of traffickers and about 19% of a chance to cut about 50 centuries of about 50 centuries were expected to have about 81% chance.
“Inflation pressure reduced compared to the previous quarter. With today’s monetary policy, SNB is against low inflationary pressure,” the Central Bank said.
“The SNB will continue to watch the situation closely and will continue to regulate the money policy to ensure that inflation remains in accordance with the average term price stability.
Switzerland faces deflation while other nations continue to inflation Consumer prices In May, it falls by 0.1% per annum.
The low levels of inflation are not unusual for Switzerland – the country has seen several deflation periods in 2010 and 2020. The strength of the country’s currency, Swiss franc, is a great contribution to this trend.
“As a safe currency, the Swiss franc tends to appreciate when there is stress in world markets,” he said.
“This is systematically lowers the price of imported products. It is a small, open economy and the CPI (consumer price index) is an import score for a large number of great ratio,” Montpellier said to CNBC before the announcement of the Central Bank.
The high level of global economic uncertainty has always intensified in recent months, and it is expected to continue to offer continuously for SNB.
Franc’s power was the main driver of Switzerland’s low-inflation, and the SNB is taking steps to restrict the currency rally by “otherwise other places”.
After the decision of the interest rate, franc Complete against the Swiss currency with US dollars.
Negative rates?
The capital economist Adrian Prettejohn told CNBC on Thursday that he expected that they expected the interest rate decision on Thursday, this year, but SNB also went to SNB.
“If inflationary pressures are not starting to increase, the future will be further in the future and the policy rate in the future, the lowest of the ratio obtained in 2010,” said CNBC.
Prettejohn said that the interests weigh in the currencies by investing in the cheaper and encouragement.
However, there are also some concerns and risks to reduce negative proportions, including depositors, including any profit and loans that result in deposits.
Ing’s de Montpellier, as a result, negative proportions “distort financial markets, to distort financial markets, squeeze the edges of the bank and increase concerns about long-term financial stability.”
