SNB cuts Policy Rate by 25bps to 1.25% (vs split expectations between a 25bps cut and a hold); reiterates SNB is willing to be active in the FX market as necessary

INFLATION

• The underlying inflationary pressure has decreased again compared to the previous quarter
• Inflation has risen slightly since the last monetary policy assessment, and stood at 1.4% in May
• Inflationary pressure abroad is likely to continue to ease gradually over the next quarters.
• The SNB will continue to monitor the development of inflation closely, and will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term.

FORECASTS