Swiss National Bank Eyes Further Rate Cuts Amid Low Inflation

Swiss National Bank board member Petra Tschudin announced that inflation dropped to 0.6%, its lowest since June 2021. Analysts expect further rate cuts as inflation remains within the target range. The monetary policy outlook remains undecided, pending the SNB's meeting on December 12.

The Swiss National Bank (SNB) may continue its trend of interest rate reductions, following a significant decrease in inflation rates. Board member Petra Tschudin reported on Thursday that October's inflation rate fell to 0.6%, marking its lowest point since June 2021.

This development has sparked analysts' expectations of further rate cuts by the SNB, as inflation rests comfortably within the 0-2% target range. Tschudin reassured the public that the current inflation levels align with the SNB's definition of price stability.

Despite this, Tschudin withheld comments on future monetary policy, indicating that important decisions will be made in the upcoming SNB meeting on December 12. The central bank has already reduced borrowing costs three times in 2024, bringing rates down to 1%.

(With inputs from agencies.)