SNB/Schlegel: Further Rate Cuts May Be Necessary

Forex - Swiss National Bank (SNB) President Martin Schlegel stated that the SNB may further lower interest rates to maintain price stability. Schlegel said, "In the coming quarters, further interest rate cuts may be necessary to sustain price stability in the medium term." These comments can be seen as the latest indication that the SNB will lower interest rates at its next meeting in December. Emphasizing the importance of the price stability target, Schlegel noted that it is a prerequisite for prosperity and growth. Referring to the SNB's inflation forecasts of an average of 1% in 2024, 0.6% in 2025, and 0.7% in 2026, Schlegel added, "The good news is that our long-term inflation forecasts indicate price stability in the area of inflation."