SNB lowered the policy rate by 25bps to 1.25% and maintained the willingness to be active in the foreign exchange markets as necessary.
In the accompanying statement, SNB said “underlying inflationary pressure has decreased again”. The central will continue to monitor the development of inflation closely, and will “adjust its monetary policy if necessary.
Taking into account today’s policy rate cut, the new conditional inflation forecast were lowered slightly to 1.3% in 2024 (prior 1.4%), 1.1% in 2025 (prior 1.2%), and then 1.0% in 2026 (prior 1.1%).
Growth is likely to remain “moderate” in Switzerland in the coming quarters. SNB anticipates GDP growth of around 1% this year, and 1.5% in 2025.
