Citing nine consecutive months of inflation being on-target, analysts at Capital Economics said focus on the franc was overplayed, however.
“The SNB has spent most of the last 15 years worrying about the franc being overvalued and the franc is still very strong, even if it was down from the end of last year,” they noted, having predicted the quarter-point cut to rates.
“We forecast the SNB to cut rates at the September and December meetings taking the policy rate to 1 per cent, where we think it will remain throughout 2025 and 2026,” said Adrian Prettejohn, an economist at the research group.