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

By John Revill

ZURICH (Reuters) – The Swiss National Bank cut interest rates by 25 basis points on Thursday, the third such cut this year, as it echoed measures to reduce borrowing costs by the European Central Bank and the Reserve US Federal.

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

Markets priced in a 55% probability of a 25 basis point cut before the decision.

The decision, the last of SNB President Thomas Jordan’s 12-year term, was enabled by taming inflation in Switzerland – which slowed to 1.1% in August and was within the central bank’s 0-2% target range for the last date. 15 months.

The Swiss franc has also appreciated in recent weeks, hitting a nine-year high against the euro in early August, adding to the difficulties facing Switzerland’s exporters.

“The easing of monetary policy by the SNB today takes into account the reduction of inflationary pressure. Further reductions in the monetary policy rate of the SNB may become necessary in the coming quarters to ensure price stability in the medium term,” the SNB said.