Breaking: SNB surprises with a 50 bps cut to Sight Deposit Rate

Banks’ sight deposits held at the snb will be remunerated at the snb policy rate up to a certain threshold, and at 0% above this threshold.

Also remains willing to be active in the foreign exchange market as necessary.

SNB will continue to monitor the situation closely, and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term.

The forecast for Switzerland, as for the global economy, is subject to significant uncertainty.

Developments abroad represent the main risk.

Uncertainty about the economic outlook has increased in recent months.

The future course of economic policy in the us is still uncertain, and political uncertainty has also risen in Europe.

It cannot be ruled out that inflation could remain higher than expected in some countries.

In this environment, unemployment should continue to rise slightly, while the utilisation of production capacity is likely to decline somewhat.

Sees 2024 Swiss GDP at around 1.0% (previous forecast was for around 1.0%).

Sees 2024 inflation at 1.1% (previous forecast was for 1.2%).

Sees Q3 2027 inflation at 0.7%.

Sees 2025 inflation at 0.3% (previous forecast was for 0.6%).

Sees 2026 inflation at 0.8% (previous forecast was for 0.7%).

Sees 2025 Swiss GDP at around 1.0-1.5% (previous forecast was for around {1.5 percent).