GENERICO.ruEconomicsThe Swiss Central Bank announced victory over inflation

The Swiss Central Bank announced victory over inflation

MOSCOW, March 21The Swiss National Bank was the first among central banks issuing world reserve currencies to lower the key rate – to 1.5% from 1.75%, this became possible due to the fact that inflation in the country has been in the target range for three quarters, according to the regulator’s statement.
Most central banks issuing reserve currencies, including the Swiss, began to raise key rates in 2022 against the backdrop of a surge in inflation in the world. Until this point, Switzerland had a negative rate of -0.75%.

“”The Swiss National Bank is reducing the SNB discount rate by 0.25 percentage points to 1.5%. The easing of monetary policy was made possible due to the fact that the fight against inflation over the past two and a half years has been effective,” the National Bank said in a statement. .
It is noted that inflation in the country has been below 2% for several months in the range that the Swiss regulator considers equal to price stability.

The Swiss National Bank's inflation target is 0-2%; price growth rates in the country have remained below 2% since May 2023, that is, nine months – in February they amounted to 1.2%.
Inflation, according to the regulator's forecast, will remain below 2% over the next few years: its average annual level in 2024 will be 1.4%, in 2025 – 1.2%, in 2026 – 1.1%. At the same time, the forecast is based on the assumption that the regulator’s discount rate will remain at 1.5%.
According to the IMF, reserve currencies in 2023 were the US dollar, euro, British pound, Japanese yen, Chinese yuan, Swiss franc, Canadian dollar and Australian dollar. Among the central banks issuing them, the last time China lowered the rate was in August 2023 to support the economy, but other regulators raised it amid rising inflation.


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