The reduction in the key rate gives new impetus to the economy. The Swiss National Bank reduced this reference rate by a quarter of a point on Thursday. This therefore goes from 1.75% to 1.5%. The institution thus distinguishes itself from the European Central Bank and the American Federal Reserve which had decided to keep their key rate unchanged. The SNB also lowered its inflation forecasts. It expects 1.4% in 2024 and 1.2% in 2025. Another good news for the Swiss economy is the revised upward forecast for GDP which should reach 1% this year. This drop in the rate surprised the majority of experts. Our financial consultant, Yann Rufer, believes that it will lead to a drop in the mortgage rate. Owners and tenants will therefore be able to see their charges decrease. A relief which will be welcome following the increase in prices suffered over the last year.
This unexpected decision by the BNS allows it to get a head start on its European and American counterparts. Thanks to this interest differential to its advantage, it fights against the strong franc without directly intervening in the foreign exchange market, estimates our financial consultant. The effect was also felt on the stock market. The SMI increased by a little less than 1% following this decline.
According to Yann Rufer, it is still difficult to predict whether further declines could occur in the coming months. It is the rate of inflation which will determine whether this possibility is possible or not. /mmt