(Bloomberg) -- The Swiss National Bank’s easing cycle will extend into next year, with economists now predicting two more interest-rate cuts at the upcoming December and March policy meetings, according to a Bloomberg survey.
Those two quarter-point moves would bring the key rate to 0.5%, the poll of economists showed. The previous survey hadn’t anticipated any action after the SNB’s September reduction.
Taking rates lower is in line with an expected slowdown of Swiss inflation. Consumer-price growth eased to 0.8% in September and is now seen averaging 1.2% this year, 0.9% next and 1% in 2026.
Additional reductions in borrowing costs are also in line with recent comments from SNB policymakers, who have suggested more easing, although they maintain that they aren’t pre-committing to such moves. Vice President Antoine Martin said on Thursday that price pressures and output trends point to a lower policy rate.
Surveyed economists largely stuck to their predictions for Swiss economic growth. They expect the pace of output to speed up to 1.4% this year and next, before accelerating to to 1.7% in 2026.
Switzerland’s central bank has reduced borrowing costs three times in 2024 and inflation has been within its 0%-2% target range for more than a year. Given the SNB’s limited easing space, a stronger-than-expected slowdown in consumer-price growth could see officials resort to currency interventions as the strong franc is reducing the price of imports.
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