Swiss National Bank Policy Meeting (Dec. 2024)

This morning’s 50bp rate cut by the SNB, which brought the policy rate to 0.5%, came as a surprise to most economists though it was balanced by a revised policy statement which implies that policymakers expect this to be the final rate cut of the cycle as it removed any mention of further cuts. We still expect at least one more rate cut next year, as we think policymakers will be forced to revise down their expectations for inflation over their forecast horizon.