The Swiss National Bank may cut interest rates again this year, Vice President Antoine Martin said on Thursday, citing the country’s current moderate economic growth and low inflation.
“As inflation is reasonably low in Switzerland and the economy can grow more quickly, this is in line with lowering key rates,” Martin said at an event organized by the Swiss Association of Analysts. financial services in Zurich.
Mr Martin referred to comments from other SNB officials, who said last month there could be another rate cut. Mr Martin added that “there are never any promises”.
The SNB has been at the forefront of central banks in cutting interest rates, cutting them three times this year to 1.0%.
It was able to cut rates after Swiss inflation remained within the target range of 0-2% over the past 15 months, while prices rose 0.8% in September, the lowest level since more than three years.
Mr Martin said the SNB could eventually consider taking interest rates back into negative territory, echoing comments made by SNB Chairman Mr Martin Schlegel last week.
The SNB previously used negative rates to cool the franc, but it abandoned that policy in September 2022 as it raised rates to combat inflation.
Mr Martin said maintaining an interest rate differential with other central banks had a significant influence on the exchange rate, which in turn affected inflation.
Still, with current inflation “firmly” within its target range, the SNB is in a comfortable position, Martin said.
“There are conceivable scenarios where we would use this tool because it is particularly useful,” Mr. Martin said, referring to negative rates.
“But we are not in a situation today where we are considering doing that.
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