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Swiss National Bank cuts interest rates by 50 basis points

BY Reuters | ECONOMIC | 03:30 AM EST

By John Revill

BERN, Dec 12 (Reuters) - The Swiss National Bank cut its interest rate by 50 basis points on Thursday, its biggest reduction in almost 10 years as it sought to stay ahead of expected cuts by other central banks and cap the rise of the Swiss franc.

The SNB reduced its policy rate from 1.0% to 0.5%, the lowest level since November 2022.

More than 85% of economists polled by Reuters had expected a smaller cut of 25 basis points, although markets had predicted the 50 point cut.

(Reporting by John Revill; Editing by Dave Graham)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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