ZURICH, Sept 26 (Reuters): The Swiss National Bank reduced interest rates by 25 basis points on Thursday, echoing steps to lower borrowing costs by the European Central Bank and US Federal Reserve, and left the door wide open for more rate cuts as inflation cools sharply.
The SNB cut its policy rate to 1.00 per cent, the lowest level since early 2023, as expected by analysts in a Reuters poll.
The cut was its third such reduction this year as the central bank dialled back measures designed to combat inflation.
The decision, the last in the 12-year tenure of SNB Chairman Thomas Jordan, was enabled by the taming of price rises in Switzerland - which slowed to 1.1 per cent in August and has been within the central bank's 0-2 per cent target range for the last 15 months.
The SNB is ready to cut interest rates again, Jordan said after the decision, noting that inflationary pressure in Switzerland had decreased significantly.
"Further cuts in the SNB policy rate may become necessary in the coming quarters to ensure price stability over the medium term," he told a press conference after his 42nd and last monetary policy meeting.
Swiss Nat'l Bank hints at further rate cuts after latest reduction
FE Team | Published: September 26, 2024 23:54:59
Swiss Nat'l Bank hints at further rate cuts after latest reduction
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