MNI BRIEF: SNB Cuts To 1.5%, Inflation On Target "For Years"

The Swiss National Bank lowered its deposit rate by 25 basis points to 1.50% on Thursday, saying that "the fight against inflation over the past two-and-a-half years has been effective," after several months during which price increases fell within the price stability target zone of less than 2%.

Inflation is now expected to remain within the desired range "over the next few year,s" the Swiss central bank said in a statement, adding that while it remains willing to be active in foreign exchange markets as necessary, "with its decision, the SNB is taking into account the reduced inflationary pressure as well as the appreciation of the Swiss franc in real terms over the past year. The policy rate cut also supports economic activity. Today’s easing thus ensures that monetary conditions remain appropriate." (See MNI SNB WATCH: Dovish Tilt, With March Cut Not Ruled Out)