Swiss National Bank
A Second Interest Rate Cut in Switzerland
June 20, 2024
The Swiss National Bank’s quarterly review of policy resulted in an as-expected 25-basis point cut in the bank’s interest rate benchmark to 1.25% following an initial reduction also of 25 bps at the prior review in March. A released statement revised down projected CPI inflation from the second quarter of next year through the outermost […] More
Several Central Banks Held Policy Reviews Today
June 20, 2024
The dollar, equity markets,and 10-year sovereign bond yields rose overnight. The dollar strengthened most sharply against the Swiss franc (0.7%) but also climbed 0.2% relative to the yen and euro and by 0.1% versus sterling and the Canadian dollar. Stock markets closed up 1.4^ in Indonesia, 0.9% in Taiwan, 0.8% in New Zealand, 0.2% in […] More
First Major Monetary Authority to Cut Rates Is in Switzerland
March 21, 2024
Among the most closely watched industrial country central banks, the Swiss National Bank today became the first one to actually reduce its policy interest rate. It is not surprising to see the SNB lead the way. Swiss inflation is particularly low, and Switzerland has a gold standard reputation of maintaining price stability. The economy also […] More
A Mixed Bag of Central Bank Moves, Purchasing Manager Surveys, and Current accounts
March 21, 2024
Since Federal Reserve President Powell said the Fed’s view on inflation had not materially changed, several other central banks have chimed in with their decisions. Interest rates were cut in Switzerland, the Czech Republic and Brazil, raised in Turkey and Taiwan, and left steady in Norway and the Bank of England. Preliminary March composite PMI […] More
A Parade of Central Bank Interest Rate Decision and A Shift Away from Risky Assets
September 21, 2023
Sovereign debt has been well-bid in the wake of the Fed’s message not to expect interest rates to fall much in 2024. Many other central banks have chimed in with hawkish messages today. Ten-year sovereign debt yields rose overnight by nine basis points in Italy, seven basis points in the U.K., six bps in the […] More
Swiss National Bank
June 22, 2023
Officials at the Swiss National Bank review policy only quarterly and today implemented a fifth straight hike, this time by a reduced 25 basis points to 1.75%. That’s the highest level in 21 years and contrasts sharply with -0.75% that prevailed from January 2015 until June 2022. Swiss CPI inflation was only 2.2%, but officials […] More
Swiss National Bank Interest Rate Lifted by 50 Basis Points to 1.50%
March 23, 2023
Domestic monetary policy is subordinated to fixed exchange rate regimes at the Hong Kong Monetary Authority and the Macau Monetary Authority. The Hong Kong dollar has been pegged to the U.S. currencies since 1983, and Macau links its currency to Hong Kong’s. As a result, whenever the Federal Reserve changes its interest rate, the rates […] More
Busy Thursday Calendar for Central Bank Watchers
March 23, 2023
Wednesday belonged to the Federal Reserve, but no fewer than eight other central banks announced their interest rate decisions today. The Swiss National Bank’s policy interest rate was hiked 50 basis points to a 14-1/2 year high of 1.50%. Rate increases of 25 basis points were engineered by the Central Bank of Norway to 3.0%, […] More
Bank of Norway and Swiss National Bank
December 15, 2022
A 25-basis point hike of the Bank of Norway‘s policy interest rate to 2.75% matches November’s incremental tightening and brings the rate level to its highest level since February 2009. Rate normalization began in September 2021 from a level of zero percent. More increases are highly probable, as inflation has been higher than imagined earlier […] More
Central Bank Interest Rate Hikes and U.S. Data Clobber Share and Bond Prices, But Dollar Soars
December 15, 2022
No fewer than eight central banks have hiked interest rates today: the European Central Bank, Bank of England, Swiss National Bank, Bangko Sentral ng Pilipinas, and Hong Kong and Macau Monetary Authorities all by 50 basis points and matching the Fed’s action yesterday; the Bank of Norway by 25 basis points; and the Central Bank […] More
