2026-01-08 08:37:15

The Swiss National Bank's policy rate cuts throughout 2024 have begun flowing through to broader lending and deposit rates across the financial system. What started as aggressive tightening reversals at the central bank level is now reshaping the general interest rate environment in the broader market.

This transmission mechanism matters more than most realize. When SNB moves, it doesn't just affect overnight funding costs—it cascades through mortgages, savings accounts, and ultimately impacts how capital allocates across asset classes. We've seen similar dynamics play out before: policy accommodation tends to increase risk appetite, while tightening cycles often redirect flows from growth and alternative assets.

The 2024 policy adjustments represent a meaningful shift in Switzerland's monetary stance. Whether this translates to sustained weakness in the franc or broader liquidity flows into riskier markets remains to be seen, but the groundwork is already being laid in real-time lending and deposit rates.

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MissedTheBoat

· 01-11 08:36

The Swiss National Bank is starting to loosen again, now someone has to come in and buy the dip. As interest rates go down, money flows into risk assets, it's the old routine. With this cut by the SNB, mortgage and deposit rates all change accordingly, truly a ripple effect. Basically, liquidity is once again abundant, and timing investors need to think carefully. Will the franc depreciate? Who knows, but anyway, the opportunity for risk assets has arrived.

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GasFeeCryer

· 01-11 00:59

UBS is starting to flood the market again, and the franc is about to be drained.

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BearMarketSurvivor

· 01-10 23:20

The Swiss National Bank's recent rate cut has extended the supply line to the end of the market. The question is—when liquidity floods in, who can maintain discipline and avoid chasing highs? This is a test of the battlefield.

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FortuneTeller42

· 01-08 09:05

The Swiss franc is about to fall again, this time the SNB really loosened monetary policy --- The transmission mechanism of interest rates, to put it simply, is money flowing downward... Risk assets should be ready to take off --- In 2024, the Swiss National Bank's actions seem to be setting the stage for liquidity flooding --- Wait, does this mean the Swiss franc is depreciating + capital flowing into high-risk assets? The conservative investors must be going crazy again, hahaha --- From overnight lending to mortgage deposits, the entire chain needs to be re-priced... Quite interesting --- No matter how you phrase it, one fact remains: low interest rates are encouraging you to gamble

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GasFeeCrying

· 01-08 08:56

The Swiss franc is about to depreciate again, money is flowing into risk assets. I'm tired of this routine. Is the SNB's rate cut transmission so fast? My mortgage rate hasn't moved yet. Basically, it's the central bank flooding the market, retail investors taking the bait—old tricks with a new packaging. The real beneficiaries are those institutions; small retail investors like us can't get anything out of it. The "meaningful shift" in 2024 sounds like a prelude to harvesting the chives...

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memecoin_therapy

· 01-08 08:47

SNB is starting to loosen its grip again. The franc probably can't withstand this anymore. When interest rates drop, where do you think the funds will flow? Don't you have a clue?

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SchroedingerAirdrop

· 01-08 08:43

UBS's recent rate cut has really stirred up the market, and the flow of money is now becoming evident. When the SNB moves, the entire market follows suit. This transmission mechanism is essentially a liquidity game. During a rate cut cycle, risk assets can turn around in minutes, and the previously suppressed demand is now bursting out. I don't really care if the franc continues to depreciate; the key question is whether those high-yield assets are still cheap now. This round in 2024 has truly rewritten the rhythm; how it will proceed depends on whether the central bank continues to play or not.

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