(AmericanProsperity.com) – The Swiss National Bank said that they had lowered their interest rates because the national inflation is projected to stay below the projected two percent.
“For some months now, inflation has been back below 2% and thus in the range the SNB equates with price stability. According to the new forecast, inflation is also likely to remain in this range over the next few years,” said the bank.
Following this they also said that they expect to lower the rates two more times throughout the rest of the year. They believe that the rates will go down even lower than they have forecasted and this will leave room for two more cuts.
“Our forecast for Switzerland, as for the global economy, is subject to significant uncertainty. The main risk is weaker economic activity abroad. Momentum on the mortgage and real estate markets has weakened noticeably in recent quarters,” said the Swiss National Bank.
The bank has said that this forecast for inflation has given them room to be able to lower their rates. They said that doing this shouldn’t affect anyone else and they have also said that other central banks may take note of this and start dropping their rates as well.
Following the pandemic, most countries experienced economic struggles and now that we are years out, countries are still looking to help their economy. The high inflation has caused an increase in interest rates and has affected people throughout the nation.
Switzerland’s rate drop could be the start of an initial fall of these rates for countries across the globe now that we are post-pandemic.
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