Despite previous suggestions of potential rate cuts, Swiss National Bank (SNB) Vice Chairman Antoine Martin stated in an interview that the central bank is not committed to reducing interest rates at its upcoming December meeting.
Although the SNB has already cut rates three times this year, bringing them to 1%, market expectations suggest a possible 25 basis point reduction at its next meeting on Dec. 12.
In September, the SNB signaled readiness to cut further, with both Martin and Chairman Martin Schlegel discussing the possibility of lower or even negative rates. Swiss inflation, currently at a manageable 0.6%—a three-year low—has provided room for such cuts. However, Martin emphasized that no decision has been finalized, as conditions could shift by December.
Martin noted that low Swiss inflation has partly contributed to the Swiss franc’s recent appreciation, as it attracts investors seeking stability in uncertain times. He added that while the franc is expected to appreciate nominally due to inflation differentials, its real-term appreciation remains moderate and poses no immediate concerns for the SNB’s monetary policy.