The Swiss National Bank (SNB) announced on Thursday that it has lowered its benchmark overnight deposit rate by 25 basis points (bps) from 1.25% to 1.00% after completing its quarterly monetary policy review.
The decision was in line with market expectations.
The SNB has cut its key rate by 50 bps so far this year, emerging as the first major central bank to implement a dovish monetary policy shift.
Summary of the SNB policy statement
Prepared to intervene in the foreign exchange market as needed.
The SNB expects Swiss growth of 1.0% in 2024 (the previous forecast was around 1%).
The SNB expects Swiss growth of 1.5% in 2025 (the previous forecast was 1.5%).
The SNB expects inflation to reach 1.2% in 2024 (previous forecast was 1.3%).
The SNB expects inflation to reach 0.6% in 2025 (previous forecast was 1.1%).
The SNB expects inflation to reach 0.7% in 2026 (previous forecast was 1.0%).
Inflationary pressure in Switzerland has eased significantly compared to the previous quarter.
The decline reflects the appreciation of the Swiss franc over the past three months.
Further cuts in the SNB policy rate may be necessary in the coming quarters to ensure price stability over the medium term.
Momentum in the mortgage and real estate markets in recent quarters has been weaker than in previous years.
Inflation in Switzerland is mainly driven by higher prices for household services.
Inflation in many countries remains above central banks’ targets.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
