Swiss
National Bank (SNB) decided on Thursday to lower the policy rate by 25 basis
points to 0 per cent. This marked the sixth straight rate cut by the SNB after
it started policy easing in March 2024.
In
its policy statement, the SNB noted:
- It remains willing to be active in the FX market as
necessary;
- With
today's cut, SNB is countering the lower inflationary pressure;
- SNB will continue to monitor situation closely and adjust
its policy if necessary, to ensure that inflation remains within the range
consistent with price stability over the medium term;
- Inflation
in Switzerland has declined further since the last monetary policy assessment, mainly
reflecting the development of prices in tourism and for oil products;
- Swiss
average annual inflation is forecast at 0.2% for 2025, 0.5% for 2026 and 0.7%
for 2027 - within the range of price stability over the entire forecast horizon;
- Swiss GDP growth is seen at 1.0-1.5% both
in 2025 and 2026;
- Unemployment
is likely to continue to rise slightly;
- Economic
outlook for Switzerland remains uncertain. Developments abroad continue to
represent the main risk