In a surprise move, the Swiss Central Bank (SNB) which cut its key interest rate by 25 basis points, namely to 1.5%emphasizing that inflation is expected to remain below 2% for the foreseeable future.

Economists polled by Reuters they estimated that the Swiss Central Bank would keep interest rates at 1.75%.

Switzerland is the first developed economy to “cut” interest ratesafter a period of inflationary pressures, a result of both its effects pandemic of Covid-19 in world trade as well as of of Russia’s invasion of Ukraine.

“For a few months now, inflation is back below 2% and, it is likely to remain at this level in the coming years” the SNB said. Swiss inflation continued to ease in February, reaching 1.2%. In this context the SNB lowered its estimates for annual inflation. It now forecasts average inflation for 2024 to come in at 1.4%, down from the 1.9% it forecast in December, and at 1.2% for 2025, down from a previous estimate of 1.6%. He also quoted the its first inflation estimates for 2026which places at 1.1%.

After the SNB announcements Capital Economics analysts they stated that they predict two more interest rate cuts by the Swiss Central Bank within the year.

The Swiss Central Bank’s announcement comes shortly before monetary policy announcements from the Bank of England and Norway’s Norges Bank.

It is recalled that yesterday, Wednesday, Fed kept interest rates steady and reiterated its expectations for three rate cuts in 2024;