The SNB cut its policy rate by 25 basis points to 1.25%, as expected by two-thirds of analysts polled by Reuters, following a similar cut in March.
The decision had been finely balanced, given a recent rebound in economic growth and a break in the trend of gently falling inflation in Switzerland.
“The underlying inflationary pressure has decreased again compared to the previous quarter,” the SNB said. “With today’s lowering of the SNB policy rate, the SNB is able to maintain appropriate monetary conditions.”
Before the decision, markets priced in a 68% likelihood of a cut, with a 32% probability for rates to remain unchanged. On a busy day for central banks on Thursday, the Bank of England is also due to announce its latest decision, with economists expecting the central bank to keep its rates unchanged. Norway’s central bank will also give its latest update.
