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MNI BRIEF: SNB Cuts Rates, Will Use FX Intervention If Needed

SNB cuts rates and lowers inflation forecasts.

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.

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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.

Keep reading...Show less