Switzerland makes surprise cut to interest rates

[mahatmakanejeeves]

Currencies
Switzerland makes surprise cut to interest rates

Central bank leads the way for big western economies with quarter-point cut to 1.5%

Sam Jones in Berlin AN HOUR AGO

The Swiss National Bank announced a surprise cut to interest rates on Thursday in a sign of policymakers’ confidence over falling inflation. ... The SNB reduced its headline rate by 25 basis points to 1.5 per cent, making it the first central bank of a major western industrialised country to do so in the current cycle, in which global inflation surged in the aftermath of the coronavirus pandemic.

Other rate-setters, such as the European Central Bank, are still fretful over persistent upward price pressures and have kept rates steady in recent decisions. 

Speaking on Wednesday, ECB president Christine Lagarde declined to commit to future cuts, warning that inflation in the eurozone would persist for the rest of the year.

The US Federal Reserve held rates steady on Wednesday but indicated significant cuts would come later this year.

{snip}

[bucolic_frolic]

1. "significant cuts would come later this year."

June, November, December. Greenspan was one for late and early year cuts in quick succession as I recall. Fed will not touch interest rates in Sept, Oct, and probably Aug.