The SNB explained in a communiqué on Thursday that inflationary pressure in Switzerland had once again fallen significantly compared to the previous quarter. The Swiss interest rate adjustment follows a 0.5% cut by the United States Federal Reserve last week.
Further interest rate cuts may be necessary in the coming quarters in order to ensure price stability in the medium term, said the central bank of Thursday. The Swiss central bank has reduced its inflation forecast to 1.2% this year and 0.6% in 2025, which is lower than the 1.3% and 1.1% predictions in June.
At the same time, the SNB is still prepared to be active on the foreign exchange market if necessary to defend the Swiss franc against appreciation.
“[GDP] Growth is likely to remain rather modest in Switzerland in the coming quarters due to the recent appreciation of the Swiss franc and the moderate development of the global economy,” the SNB stated, as it forecast 1% economic growth this year.
The SNB had already lowered the key interest rate by 0.25 percentage points in both March and June.
More
More
Business lobby wants SNB to act against strong Swiss franc
This content was published on
The National Bank must act fast to keep the franc’s strength from hurting exports, says the country’s biggest manufacturing lobby.
In response to rising inflation, the central bank had previously raised the key interest rate from -0.75% to 1.75% in just five steps from June 2022 and then left it unchanged twice.
Translated from German by DeepL/mga
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, if you want to learn more about how we use technology, click here, and if you have feedback on this news story please write to [email protected].
More
Swiss air traffic control upgrade slows tempo for safety reasons
This content was published on
The upgrade of Switzerland’s air traffic control system will take longer than anticipated following a series of malfunctions.
Switzerland remains ‘world’s most innovative country’
This content was published on
Switzerland remains the world's most innovative country, still ahead of Sweden and the US on the WIPO Global Innovation Index.
This content was published on
Self-confident people have more and better sex, according to a long-term study by the Universities of Zurich and Utrecht.
SWI swissinfo.ch – the international service of the Swiss Broadcasting Corporation (SBC).
Since 1999, swissinfo.ch has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.
Only one trio out of 30 finalists completed the course—a testament to the challenging task that demanded the utmost from horse and rider, overtaxing some of the duos.
Copyright 2024 The Associated Press. All Rights Reserved
In 2024, the tourism and travel industry is expected to reach, or even exceed, pre-pandemic levels. Francisco Betti is the co-author of a report on world tourism for the World Economic Forum (WEF). He believes firmly in the key role of technological progress in making the sector sustainable in the next 20 years.
High incomes in the Swiss canton of Ticino will in future benefit from tax relief. A corresponding amendment to the law was approved by voters on Sunday. Compensatory measures for planned pension cuts for cantonal employees were also approved.