The Swiss Franc weakens after the Swiss National Bank decides to cut interest rates from 1.75% to 1.50%.
The move was not widely expected by markets and the Swiss Franc has sold off heavily following the news.
The SNB gives victory over inflation, a too-strong Swiss Franc and the need to stimulate economic activity as reasons for the cut.
The Swiss Franc (CHF) is trading weaker by about one percent in its most heavily traded pairs on Thursday after the Swiss National Bank (SNB) decided to cut interest rates at their March meeting.
The SNB cut its policy rate by 0.25% from 1.75% to 1.50% on Thursday, surprising traders who had been expecting a maintenance of the status quo. The move comes after a larger-than-expected fall in Swiss inflation in the first months of the year, and a slowdown in economic growth in 2023.
The Swiss Franc weakened on the news since lower interest rates tend to reduce foreign capital inflows.
Edited 24 Mar 2024, 02:05
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