Previous Trading Days Events 20.06.2024

The Swiss National Bank SNB cut interest rates for the second time. The Swiss franc weakened against other currencies and stocks gained after the central bank cut its policy rate by 25 basis points to 1.25, as expected by twothirds of analysts polled by Reuters, following a quarterpoint reduction in March.

The underlying inflationary pressure has decreased again compared to the previous quarter, SNB Chairman Thomas Jordan said. With todays lowering of the SNB policy rate, we are able to maintain appropriate monetary conditions.

Various factors lie behind Switzerlands low price pressures, including an energy mix that makes the country less exposed to oil and gas costs, wage restraint, and protection against imported price inflation from the strong franc.

Cooling inflation allowed the SNB to become the first major central bank to lower rates at its last meeting.

Source httpswww.reuters.commarketsratesbondsswissnationalbankcontinuesratecutssaysinflationeasedagain20240620

The pound and U.K. bond yields dipped after the Bank of England BOE held interest rates at a 16year high of 5.25, but some policymakers said their decision not to cut was now finely balanced.

British inflation fell to 2 in May as per the CPI data report this week, hitting the BoEs target for the first time since 2021, but policymakers remain concerned about underlying price pressures, including strong price growth in the services sector.

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