Swiss Central Bank lowers policy rate 3rd time in row

By Gokhan Ergocun

ISTANBUL (AA) - The Swiss Central Bank cut its policy rate to 1% by 25 basis points, third time in a row in 2024.

The bank stressed that the inflationary pressure in the country decreased significantly in the third quarter versus the previous quarter.

Since the last monetary policy assessment, the inflation was lower than expected, standing at 1.1% in August compared to 1.4% in May, the bank recalled.

The bank also forecasted that the average annual inflation was at 1.2% for 2024, 0.6% for 2025 and 0.7% for 2026.

"Further cuts in the SNB policy rate may become necessary in the coming quarters to ensure price stability over the medium term," the bank noted.

From June 2022 to June 2023, the bank had been increasing the rate from minus 0.75% to 1.75% gradually and kept the rate till the end of 2023.