After the Swiss National Bank (SNB) cut the policy rate by another 25 basis points (bps) at the third consecutive meeting, President Thomas Jordan explained the rationale behind the move at the post-policy meeting press conference on Thursday.
Key quotes
Inflationary pressure has eased significantly in Switzerland.
The strong Franco and lower oil and electricity prices helped reduce inflation forecasts.
The downside risks to inflation are greater than the upside risks.
Further interest rate cuts may be necessary in the coming quarters.
Swiss economic growth to be ‘rather modest’ in coming quarters
Market reaction to SNB’s Jordan comments
At the time of writing, USD/CHF maintains the rebound near 0.8500, still down 0.14% on the day.
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.
