The Swiss National Bank lowered interest rates by 0.25%, in line with expectations, and indicated the possibility of further easing ahead

The Swiss National Bank (SNB) cut interest rates by 25 basis points to 1% during its Thursday policy meeting, marking the lowest level in over 1.5 years. The move was widely anticipated and aligned with a broader global trend of monetary easing, following similar actions by the European Central Bank and the Federal Reserve.

This was the SNB’s third rate cut this year, justified by slowing inflation, which has remained within the central bank’s 0-2% target range for over a year, dropping to 1.1% in August. The SNB signaled that further rate cuts could be on the horizon.

SNB Chairman Thomas Jordan emphasized that the central bank remains prepared to reduce rates further as inflationary pressures ease, and additional cuts may be necessary to maintain price stability.

Additionally, the SNB revised its inflation forecasts for the coming years, lowering its 2024 projection from 1.3% to 1.2%. The outlook for 2025 and 2026 was also downgraded, with expected consumer price growth falling to 0.6% (from 1.1%) in 2025 and 0.7% (from 1.0%) in 2026.