The major central banks raised their key short-term interest rates at record speed. The US Federal Reserve (Fed) and the European Central Bank (ECB) tightened monetary policy exceptionally quickly. The Swiss National Bank (SNB) also reacted and pushed up the key short-term interest rate by 2.25 percentage points in less than a year.
Inflation rates are falling, while at the same time dark clouds are appearing on the economic horizon. Central banks have done most of their work. In the US, monetary tightening may well have run its course. The SNB and the ECB will probably implement interest rate moves, but the potential for rate hikes remains limited. Both central banks have most of the work behind them. We are already offering attractive conditions to bridge the period until interest rates hit their imminent peak.