What happened?
The Swiss National Bank has become the first major developed central bank to cut interest rates since the pandemic abated, in a surprise move that pushed the franc lower against the euro and US dollar. Most economists had expected the SNB to wait for clearer indications that the European Central Bank and Federal Reserve were poised to ease policy.
The 25-basis-point cut, which took the main policy rate to 1.5%, initially pulled the franc 1% down against the euro, to its weakest level since July 2023. The Swiss currency also fell 1.2% against the US currency to a four-month…