Swiss inflation strengthens case for central bank rate cut

Swiss inflation fell in February to its lowest level in nearly two and half years, government data showed on Monday, fuelling expectations that the Swiss National Bank could cut interest rates later this month. Consumer prices rose by 1.2% compared with a year earlier, a deceleration from the 1.3% rate in January albeit a slightly higher rate than the 1.1% forecast in a Reuters poll. The figure was the lowest reading for Swiss inflation since October 2021 and was well within the SNB’s target range, which aims for price increases between 0% and 2%.