The SNB stole a march on the ECB after cutting rates by 25 bps to 1.50%. 

Market views were divided but the chance for a cut was not negligible after much softer inflation in 1Q. No cut would have meant inflation undershooting the target. Even after today’s reduction, the first since 2019, inflation in Switzerland is still forecast to average only 1.4% this year, 1.2% in 2025 and 1.1% in 2026. In other words, don’t rule out further cuts to get inflation back up to target. The next one could come in June. 

Chair Jordan said the bank will adjust monetary policy again if necessary. That’s a recipe for steady Franc depreciation.