🚨 Switzerland cut rates

Switzerland showed inflation how it's done | Birth rates were projected to fall in most of the world's countries | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for March 22nd in 3:11 minutes.   ☀️ If the first days of spring have put a pep in your step, ISA season will have you practically skipping. Join us for [How To Build Your ISA Portfolio]( on Tuesday, and find out how to save tax while setting up a portfolio. [Grab your free ticket]( Today's big stories - Switzerland became the first advanced economy to cut interest rates since the post-pandemic inflation spike - Five reasons why no one saw the last huge crisis coming, and what it means for the next one – [Read Now]( - The world’s population projections could make or break countries’ economies Swish Swiss [Swish Swiss] What’s going on here? The Swiss National Bank (SNB) [bucked]( expectations by cutting interest rates, claiming victory over inflation and its European neighbors. What does this mean? Most economists expected the SNB to hold interest rates steady at 1.75% when it met on Thursday, with only a few putting their cards on a cut. After all, higher rates don't seem to be weighing on Switzerland’s economy and job market too much. The number crunchers’ group chats must have been abuzz, then, when the central bank lowered the rate by 0.25% to 1.5%. That officially made Switzerland the first advanced economy to cut interest rates since inflation picked up after the pandemic and war in Ukraine. The decision came after February’s inflation reading landed at 1.2%, the same as Switzerland’s 2021 level and easily below its 2% target – proving that it is possible to put the inflation genie back in the bottle. Why should I care? Zooming in: To be franc… Traders now expect the SNB to cut rates twice more before the year is out. Remember, though, that lower interest rates tend to bring currencies down with them, which is why the Swiss franc fell by around 1% against the US dollar after the news. The central bank needs to keep an eye on that: a lower Swiss franc makes it more expensive to import goods – and that could coax inflation back into town. Zooming out: Central banks are turning green. The SNB brought its inflation forecasts down a notch or two, estimating 1.4% for this full year, 1.2% for next, and 1.1% for 2026. That’ll be the envy of central banks in the US, UK, and Europe as a whole. Stubborn inflation is forcing them to keep their interest rates high, potentially sacrificing their economies by forcing folk to hold off from spending and companies from investing. You might also like: [How interest rates influence every investment you make](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Swish Swiss&utm_campaign=daily-global-22-03-2024&utm_source=email) Analyst Take The Experts Didn’t See The Global Financial Crisis Coming [The Experts Didn’t See The Global Financial Crisis Coming]( [Photo of Stéphane Renevier, CFA] Stéphane Renevier, CFA, Analyst For most of [2008](, we seemed to be on track. The economy was booming, folks were cheerful, stocks were going up, and economists were broadly dismissing the idea of a potential recession. Then in a blink, it all went south, with markets and the economy nosediving simultaneously as the [global financial crisis]( took hold. We’re arguably in a much better place today, but history whispers a caution: in the brightest moments, it’s easy to lose sight of the lessons from the past. That’s today’s Insight: [why the experts didn’t see the global financial crisis coming](. [Read or listen to the Insight here]( Create tomorrow’s portfolio, today [Climate change]( is a serious threat, no matter what your sun-worshiping grandparents say. If the image of crumbling ice caps and suffering animals doesn’t hit you in the gut, [the financial impact]( sure will. See, not only will increasingly extreme weather conditions force companies to adjust their operations and prepare their insurance companies, but it’ll also recalibrate the top table. Today’s biggest firms might not hold onto their rank in a future with different government standards, energy sources, and solvable challenges. That means your best investments might not keep up, either. So [check out our free guide]( to climate finance investing, and find out how to [prepare your portfolio for a new future](. [Read The Guide]( Oh, Baby [Oh, Baby] What’s going on here? Research [published]( this week suggested that declining birth rates in many countries could reshape the global economy. What does this mean? The global population will tick up from today’s 8 billion to 9.7 billion by 2050, according to the United Nations. Yet at the same time, medical journal The Lancet predicts that three-quarters of all countries will struggle to keep their populations stable from 2050. That’s because birth rate projections aren’t equal across the board. Women are statistically expected to have 2.1 children each to build the next generation – a daunting expectation that many are now ignoring, especially in wealthier countries. That means most of the future population increase will come from lower-income areas, specifically in Asia and sub-Saharan Africa, where climate change and limited resources are already straining communities. Why should I care? Zooming out: Money makes the difference. Countries with shrinking populations will end up with shrinking workforces, too, which can be a serious drag on their economies. The opposite is true when a country’s population increases: a bigger and younger workforce means more productivity and economic growth, as well as a wider pool of consumers for companies to sell to. That only works with the right infrastructure, though, so developing countries – where populations are expected to increase – need to attract enough money to fund education, businesses, and healthcare services to make sure their economies don’t bust, but boom. The bigger picture: People schmeople. Japan’s workforce is already weakening, and with the country’s birth rate [falling]( for the eighth year in a row, that trend looks locked in. In fact, Japan is projected to have 11 million fewer workers by 2040, with nearly a third of its population landing in the over-65 category. Don’t forget, though, that we’re hurtling toward a future run by robots: Japan’s already rolling out AI avatars and services to plug the gap – so maybe AI won’t steal jobs, but scavenge them. You might also like: [China’s shrinking population is creating opportunities for AI.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Oh, Baby&utm_campaign=daily-global-22-03-2024&utm_source=email) 💬 Quote of the day "Camping is nature's way of promoting the motel business." – Dave Barry (an American author and columnist) [Tweet this]( SPONSORED BY HEALTHWORDS.AI Discover your personalized, high-tech weight-management plan Weight loss isn’t just hard: it can be daunting, frustrating, and lonely. It doesn’t have to be, though. [Healthwords.ai]( has put together a [comprehensive weight-management program]( designed to help you bolster your long-term health. After your consultations, you’ll start a meticulously tailored program featuring [Wegovy]( – the breakthrough weight-management drug from Novo Nordisk, now accredited by the NHS in the UK. The best bit: you’ll have [support and resources]( for every stage, including expert dietary advice, personalized fitness programs, monthly check-ins, one-to-one coaching, and 24/7 support. So if you want to find out more about a scientific approach to weight management, with a human hand at every stage, you can [read about Healthwords.ai’s program here](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( 🎯 On Our Radar 1. Glassdoor just added real names to profiles. Maybe you shouldn’t have opened up about [your boss’s weird habit](. 2. Governments are finding ways to make money from sustainability. You can [do the same](.* 3. London is meant to be a 24-hour city. Despite a six-figure salary, this [planner couldn’t make it so](. 4. AI might be savvy, but it's far from infallible. If you want to invest with the tech, [make sure you do it right](.** 5. Now that’s how you do a gender reveal. An Athens zoo just celebrated [the birth of the first male pygmy hippo in ten years](. **See Streetbeat's [disclosures](. When you support our sponsors, you support us. Thanks for that. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... All events are in UK time. 🏦 [How To Build Your ISA Portfolio:]( 5pm, March 26th 💰 [How To Become An ISA Millionaire:]( 5pm, March 27th 💪 [Building Wealthy Women: Investing in Your Future:]( 5pm, April 11th 💥 [A Beginner's Guide To Impact Investing](: 5pm, April 25th 📈 [An Insider's Guide To Success As A Finance Professional](: 5pm, May 14th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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