The stock market continues to collapse after the Swiss National Bank’s interest rate hike. Investors should be clear: this interest rate decision is just the beginning.
According to economist Klaus Wellershoff, the main reason for the slump on the Swiss stock exchange on Thursday is not the higher key interest rate, but the resulting strengthening of the franc.
Uncomfortable times are dawning for investors on the world markets, but also on the Swiss home market. On Thursday, the Swiss National Bank (SNB) announced the first interest rate hike in 15 years (plus 0.5 percentage points). “To put it bluntly, the SNB made a real splash. She has proven that she does not let her cards be looked at, »says Brian Mandt, chief economist at the Luzerner Kantonalbank. The markets were surprised not only by the key interest rate increase itself, but also by the fact that it was 50 instead of 25 basis points.