The Swiss National Bank (SNB) announced on Thursday its decision to cut its benchmark sight deposit rate by 25 basis points (bps) to 1.50%, defying expectations that projected the institution would keep it at 1.75%.
The bank stated that such a move came after Switzerland's annual inflation rate stood under 2% for the past few months, which "equates with price stability." "According to the new forecast, inflation is also likely to remain in this range over the next few years," the SNB noted.
"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. Its newest decision will come into effect on March 22, 2024.
