Switzerland's Inflation Drops to Zero in April, Sparking Rate Cut Bets
(MENAFN) Switzerland's statistics office announced Monday that annual inflation unexpectedly reached 0% in April, fueling speculation of another interest rate reduction in June.
This figure represents the lowest inflation rate in four years and aligns with the lower end of the Swiss National Bank's (SNB) 0% to 2% target range for price stability. Preliminary data from the Swiss Statistical Institute had indicated a year-over-year inflation rate of 0.3% in March.
On a monthly basis, consumer prices remained unchanged. Core inflation in Switzerland, which excludes volatile food and energy prices, registered at 0.6% in April, also falling short of analysts' projections.
The SNB had previously lowered its policy rate by 25 basis points on March 20, a move that was widely anticipated. Now, with inflation at this low level, the central bank is largely expected to further reduce the policy rate to 0% during its June meeting amid growing concerns that inflation could potentially turn negative.
This figure represents the lowest inflation rate in four years and aligns with the lower end of the Swiss National Bank's (SNB) 0% to 2% target range for price stability. Preliminary data from the Swiss Statistical Institute had indicated a year-over-year inflation rate of 0.3% in March.
On a monthly basis, consumer prices remained unchanged. Core inflation in Switzerland, which excludes volatile food and energy prices, registered at 0.6% in April, also falling short of analysts' projections.
The SNB had previously lowered its policy rate by 25 basis points on March 20, a move that was widely anticipated. Now, with inflation at this low level, the central bank is largely expected to further reduce the policy rate to 0% during its June meeting amid growing concerns that inflation could potentially turn negative.
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