Daily Management Review

Swiss central bank cuts rate to 1.25% from 1.5%


The Swiss National Bank (SNB), lowered the benchmark interest rate by 25 basis points, to 1.25% annually.

Ank Kumar
Ank Kumar
This was in line with most analysts' predictions.

The central bank lowered its rate in response to declining core inflation for the second week in a row,.

"SNB will continue to closely monitor changes in inflation and adjust monetary policy if necessary to ensure that inflation remains in a range consistent with price stability over the medium term," the bank stated.

If the benchmark rate remains at its current levels for the duration of the forecast period, the SNB projects that the average inflation rate in the nation will be 1.3% in 2024, 1.1% in the following year, and 1% in 2026. In addition, the central bank projects a 1.5% GDP growth in 2025 and a 1% increase in GDP this year, along with a modest increase in unemployment.

source: ft.com