The Swiss National Bank makes a decrease in interest rate in a quarter, quotes “low inflation”

The Swiss National Bank on Thursday reduced its key interest rate by another 25 basic points when the country’s economy is fighting with depression of inflation.

“With the help of today’s SNB speed adjustment, the cash conditions remain appropriate, given low inflation and increased risks for inflation,” SNB said.

The bank will continue to keep a close eye on the situation and, if necessary, make additional adjustments to the monetary policy “to ensure that inflation remains within the range, which corresponds to the stability of the medium -term prices.”

This step takes the main rate of the bank up to 0.25%. The slice was widely expected, and traders have previously prices for more than 70% of chances of reducing a quarter of points.

From this follows a 50-base announced by the Central Bank in Decemberthat at that time it exceeded the expectations. It also noted the fourth decrease in the interest rate from SNB, since Switzerland became the first major economy to facilitate monetary policy in March Last year.

The rate of the rate comes as Swiss inflation According to official data, the nearly four -year minimum of 0.3% decreased in February. The Federal Statistical Service has led to cheaper imports as a key factor that contributes to a low inflation figure.

SNB said on Thursday that inflation developed, as expected, after a preliminary assessment of monetary policy.

“The new conditional inflation forecast has hardly changed since December. Without a decrease in today’s level, the forecast would be lower in the medium term, “the Central Bank added, saying that its inflation forecast was within the stability of prices in the medium term.

SNB expects inflation to average 0.4% in 2025.

Stefan Gerlach, Chief Economist of the EFG Bank, said SNB expects inflation to ease this level by saying that “this is like the SNB thought.”

“I think now is justified to make sure that inflation will not be too low,” he said Carolin Roth CNBC.

Swiss franc After the SNB speed decision, the euro lasts 0.06% against Frank. Frank is widely regarded as a safe shelter in times of political upheaval and uncertainty in the euro area and generally remained strong, even when SNB reduced interest rates.