The Swiss National Bank (SNB), the central bank of Switzerland, lowered its interest rate by 25 basis points to 1.25 percent on Thursday, marking its second cut of the year amidst signs of cooling inflation.
SNB Chair Thomas Jordan cited the easing inflationary pressures in Switzerland, the strengthening of the Swiss franc, and the heightened global uncertainties as the major factors behind the cut while also expressing readiness to intervene in the foreign exchange market as needed.
The SNB had previously announced a 25-basis point interest rate cut to 1.5 percent on March 21, thus making Switzerland become the first major economy to cut interest rates this year.
Swiss central bank cuts interest rate for second time this year
The United Nations has warned that Sudan is facing the worst levels of acute food insecurity ever recorded by the Integrated Food Security Phase Classification (IPC).
The UN warning was issued in a report released on Thursday on its official website.
"Fourteen months into the conflict, Sudan is facing the worst levels of acute food insecurity ever recorded by IPC in the country. Over half the population (25.6 million people) face crisis or worse conditions(IPC Phase 3 or above)," said Rein Paulsen, Director of the Office of Emergencies and Resilience, Food and Agriculture Organization (FAO).
This includes 755,000 people facing "catastrophe" food insecurity (IPC Phase 5) in 10 states including Greater Darfur (all five states), South and North Kordofan, Blue Nile, Al Jazirah, and Khartoum. Another 8.5 million people, 18 percent of the population, are in "emergency" (IPC Phase 4).
"And there is a risk of famine in 14 areas, localities and clusters affecting both residents, internally displaced people, and refugees. And those 14 locations are found in greater than for Greater Kordofan, Al Jazeera states, and some hotspots in Khartoum," said Paulsen.
He noted that if the conflict escalates further, it will further disrupt "mobility, humanitarian assistance, access to markets and livelihood activities."
Sudan has been embroiled in a deadly conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces since mid-April 2023, which has claimed more than 16,650 lives, according to the Sudan situation report updated by the UN Office for the Coordination of Humanitarian Affairs on June 24.
This latest IPC analysis marks a stark and rapid deterioration of the food security situation compared to the previous IPC update published in December 2023. Six months later, the number of people facing high levels of acute food insecurity has increased by 45 percent, including a 74-percent increase in IPC Phase 4, while the population in IPC Phase 5 (catastrophe) has surged from zero to 755,000 in the period from June to September 2024. Compared to the same time last year, the number of people classified in IPC Phase 3 or above has increased by over 50 percent.
The conflict has not only triggered mass displacement and disruption of supply routes, market systems and agricultural production, it has also severely limited access to essential humanitarian assistance, exacerbating an already dire situation.
The impact of conflict extends beyond food insecurity. Reports from various states highlight highly dysfunctional health services, water contamination and poor sanitation and hygiene conditions. Increased morbidity to water-borne diseases is expected to further reduce the absorption capacity of the little food available for children and adults.
Consequently, cases of acute malnutrition, which have already reached extremely high levels in some areas will likely increase. Moreover, the fast-approaching rainy season and expected floods will likely affect the agricultural season through the spread of pests and plant diseases, according to the report.
UN warns worst food crisis in Sudan
