Switzerland’s central bank enacted its second interest rate cut of the year while the Bank of England opted to hold rates at their current level.
The Swiss National Bank slashed its key interest rate by 25 basis points to 1.25%. In March, Switzerland became the first major economy to cut rates in the post-pandemic environment when it reduced its main policy rate by 25 basis points to 1.5%.
Switzerland has not experienced the level of inflation that burdened Europe in the past few years – as of May, the nation was dealing with a 1.4% inflation rate, which is within the central bank’s range of zero to 2%.
Separately, the Bank of England opted to hold interest rates at their 16-year peak of 5.25%. While the central bank hinted at a possible rate cut this month and the nation’s inflation rate dropped to the target of 2% last month, the Bank of England’s policy makers voted 7-2 to hold rates ahead of the July 4 national election – although the central bank stressed the election was “not relevant to its decision.”
Also in Europe today, Norway’s central bank held its key policy rate at 4.5% and stated there was little likelihood for a rate cut this year.
Earlier this month, the Bank of Canada and the European Central Bank opted to cut their respective rates while the Federal Reserve held rates in place.
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