SNB cuts interest rates by 25 basis points for third time this year

The SNB cut its policy rate to 1.00 per cent, the lowest level since early 2023. Image: Shutterstock

2 min read Last Updated : Sep 26 2024 | 1:23 PM IST

The Swiss National Bank cut interest rates by 25 basis points on Thursday, its third such reduction this year, as it echoed steps to lower borrowing costs taken by the European Central Bank and US Federal Reserve.

The SNB cut its policy rate to 1.00 per cent, the lowest level since early 2023, as expected by 30 of 32 analysts in a Reuters poll.

Markets had priced in a 55 per cent probability of a 25 basis point cut before the decision.

The decision, the last in the 12-year tenure of SNB Chairman Thomas Jordan, was enabled by the taming of inflation 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 Swiss franc has also appreciated in recent weeks, rising to its highest level in nine years against the euro in early August, adding to the difficulties facing Switzerland's exporters.

"The SNB's easing of monetary policy today takes the reduction in inflationary pressure into account. Further cuts in the SNB policy rate may become necessary in the coming quarters to ensure price stability over the medium term," the SNB said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 26 2024 | 1:22 PMIST