Swiss Inflation Stalls at 0%, Rate Cuts Anticipated
Swiss inflation reached an unexpected low of 0% in April, signaling potential rate cuts by the Swiss National Bank (SNB) to maintain its 0-2% target range. Future policy adjustments may follow as economic indicators suggest further reductions could be necessary to prevent a dip below target inflation levels.
- Country:
- Switzerland
Swiss inflation stagnated at an unexpected 0% in April, according to government data released Monday. This unexpected plateau increases the possibility of upcoming rate cuts by the Swiss National Bank (SNB) in the near future.
Consumer prices showed no change from the previous year, against predictions of a 0.2% rise in a Reuters poll. The SNB may lower its policy rate from the current 0.25% as inflation levels flirt with the lower end of their 0-2% target.
Prior to the data release, markets had a 93% certainty of a rate cut to 0% by June 19. A further reduction to below 0% by year-end is considered almost certain at 95% probability.
(With inputs from agencies.)
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