Swiss National Bank Chairman Martin Schlegel spoke on Tuesday:
"In the coming quarters, further interest rate reductions could be needed to maintain price stability in the mid-term"
"The good news is that our inflation forecasts show inflation in the area of price stability in the long term"
SNB forecasts for average inflation rates:
- 1.2% in 2024
- 0.6% in 2025
- 0.7% in 2026
On the Swissy, Schlegel said the Bank is ready to be active in forex markets if necessary, and negative rates are in the Bank's tool kit.
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The Swiss National Bank next meet in December (the 12th), the prospect of a rate cut at that meeting is live. Markets are priced around 70% for a 25bp rate cut, and 30% for a 50bp cut.
The Bank has already cut rates three times this year, down to 1%.
Martin Schlegel