Swiss National Bank Cuts Policy Rate by 50 Basis Points to 0.50% in Largest Reduction in Nearly a Decade

The Swiss National Bank cut its policy interest rate by 50 basis points to 0.50% on 12 December 2024, a larger reduction than markets had anticipated. The move is the SNB's largest rate cut in nearly a decade.

Consensus market expectations ahead of the December meeting had centred on a more modest 25-basis-point reduction.

INFLATION

Consumer price inflation in Switzerland stood at 0.7% at the time of the December decision, within the SNB's 0-2% price stability target band.

RATE HISTORY

At 0.50%, the rate remains above zero and above the negative territory — as low as minus 0.75% — that characterised Swiss monetary policy for much of the period between 2015 and 2022.

The Governing Board has previously made clear its readiness to intervene in foreign exchange markets.