MNI BRIEF: SNB Cuts Rates, Will Use FX Intervention If Needed
MNI (LONDON) - The Swiss National Bank cut its policy rate by 0.25 percentage points to 1.0% on Thursday, as anticipated, with the threshold-adjusted sight deposit rate cut to 0.5%. SNB policymakers also stressed their willingness to be active in the foreign exchange market as necessary. (see MNI SNB WATCH: Rate Cut and FX Intervention As Inflation Falls )
According to the policy statement, the rate cut reflected both the strength of the Swiss franc and the continued decline of inflationary pressures throughout the domestic economy.
The inflation outlook has been lowered across the board, with the SNB's new forecast showing price growth within the range of price stability over the whole forecast horizon. It puts average annual inflation at 1.2% for 2024, 0.6% for 2025 and 0.7% for 2026.