Financial News: Swiss Central Bank Cuts Policy Rate

Swiss Central Bank Cuts Policy Rate

03/21/2024 - 04:55:00 (RTTNews)

(RTTNews) - The Swiss National Bank lowered its policy rate by a quarter-point on Thursday as the fight against inflation over the last two and a half years has been effective. The SNB unexpectedly lowered the policy rate by 25 basis points to 1.5 percent. Markets expected the bank to keep the rate unchanged.

The central bank said it remains willing to be active in the foreign exchange market as necessary.

The policy rate cut supports economic activity and today's easing ensures that monetary conditions remain appropriate, the bank said.

"The SNB will continue to monitor the development of inflation closely, and will adjust its monetary policy again if necessary to ensure inflation remains within the range consistent with price stability over the medium term," the bank said.

The SNB downgraded inflation outlook for 2024 to 1.4 percent from 1.9 percent.

Similarly, the projection for 2025 was trimmed to 1.2 percent from 1.6 percent. The central bank sees inflation at 1.1 percent in 2026.

The central bank forecast the economy to grow by around 1 percent this year.

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