MNI BRIEF: SNB Cuts Policy Rate By 50 BP To 0.5%
MNI (LONDON) - The SNB cut its key policy rate by 50 basis pointsto 0.5%, with the rate on excess sight deposits cut to 0%, the Board announced on Thursday, adding that the Bank remains willing to be active in the foreign exchange market as necessary. (See MNI SNB WATCH: To Cut and Signal More As Inflation Undershoots )
Lower inflation in the last quarter was behind the SNB's rate cut decision, with the annual rate below the September projection. Without the latest cut, the projection would be "lower still", the statement said.
Without committing to a future rate cut path, the SNB said it is willing to act as necessary to ensure price stability.
"The SNB will continue to monitor the situation closely, and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term," the statement said.