Investing.com – The Swiss National Bank cut its key interest rate by 25 basis points to 1.0% on Thursday, its third consecutive reduction.
The Swiss central bank had been widely expected to ease monetary policy as the country’s inflation rate came in at 1.1% last month, the slowest pace among G10 economies and nearly in the midpoint of the SNB’s 0%-2% target range.
Meanwhile, business surveys indicate that broader economic activity has been weak over the summer, and unemployment has also continued to trend upward slightly since the first half of 2023.
A Reuters poll found that 30 out of 32 economists had expected a 25 bps cut, with one forecasting a 50 bps reduction and another expecting rates to hold steady.
In March, the SNB rolled out an unexpected quarter-point reduction, its first drawdown in nine years. Cuts at the last two meetings have placed the SNB at the forefront of a recently burgeoning trend of global central banks lowering rates following a period of tighter policy aimed at quelling inflation.
Last week, the Federal Reserve announced a super-sized half-point cut, while the European Central Bank has slashed rates twice in three months.
