The Swiss central bank announced its decision on monetary policy for September 2024, the statement included the following:-

- Reduction of interest by 25 basis points.

- Ready to intervene in the foreign exchange market as necessary.

- Inflation pressures again decreased significantly compared to the previous quarter.

- This reflects the appreciation of the Swiss franc over the past few months.

- The stronger franc partially contributed to the downward revision of inflation expectations.

- Inflationary pressure abroad is likely to continue to gradually subside over the coming quarters.

- Further reductions in interest rates may be necessary to ensure price stability in the medium term.

- The Swiss economy is expected to grow in 2024 by about 1.0%, unchanged.

- The Swiss economy is expected to grow in 2025 by about 1.5%, unchanged.

- Inflation is expected in 2024 at about 1.2% and was 1.3% previously.

- Inflation is expected in 2025 at about 0.6% and was 1.1% previously.

- Inflation is expected in 2026 at 0.7% and was 1.0% previously.

The Swiss franc gained some gains after the decision, as the markets priced the option almost 50-50 at the beginning of the day as we mentioned here, the Swiss National Bank did not press strongly against the franc, as they do not go so far as to describe it as overvalued again and therefore the franc rose at the time of the release of the statement.However, we expect the franc to return to decline in the coming period.

The president of the Swiss National Bank Jordan also spoke during the press conference and said:-

- Inflation pressures decreased significantly in Switzerland.

- Further reductions in interest rates may be necessary in the coming quarters.

- The appreciation of the franc and the fall in oil and electricity prices contributed to lowering inflation expectations.

- Swiss economic growth will be rather modest in the coming quarters.