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Jackie Bowie discusses how the Swiss National Bank's rate cut will affect other central banks

March 22, 2024


Bloomberg Daybreak Europe interviews Jackie Bowie about the Swiss National Bank's interest rate decision and what it means for other central banks, Federal Reserve commentary, and how transatlantic currencies might be affected.

All eyes have been eagerly watching for signals of who would take the plunge first in cutting interest rates. With the Swiss National Bank announcing their first rate cute, various central banks find themselves at different points along the spectrum of monetary policy adjustments.

As the Bank of England (BoE) is nearing the end of its rate-hiking cycle and hinting at a potential rate cut post-summer, the Fed dot plot projections suggest three 25-basis-point cuts for the U.S., with the first expected during the June meeting. In contrast, the European Central Bank (ECB) and the BoE grapple with sluggish growth dynamics, placing increased pressure to stimulate economic activity.

"The European and U.K. economies are struggling much more from a growth perspective so the central banks are under a bit more pressure to stimulate growth."

Jackie Bowie on Bloomberg Daybreak Europe

The recent hike by the Bank of Japan (BoJ) raises questions about whether this signals the beginning of a tightening cycle or merely a singular adjustment. Importantly, the transition from yield curve control to the first rate hike underscores a pivotal shift in monetary policy and messaging.

As transatlantic currency remains in flux, markets are awaiting further developments and shifts in policy direction that could shape the trajectory of global economies in the coming months.

"There has been a moderation of expectation of how much interest rates will be cut this year and next."

Jackie Bowie on Bloomberg Daybreak Europe

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