By John Revill

ZURICH (Reuters) – The Swiss National Bank (SNB) might cut interest rates again this year, according to Vice Chairman Antoine Martin, who pointed to moderate economic growth and low inflation in Switzerland.

> "With inflation being reasonably low in Switzerland and with an economy that could grow faster, that tends in the direction of a lower policy rate," Martin stated at an event organized by the Swiss Financial Analysts Association in Zurich.

Martin referenced comments from other SNB officials from last month, indicating the possibility of another rate cut, while emphasizing, "there are never any promises."

The SNB has been active in reducing interest rates this year, having lowered them three times to 1.0%. This action was made possible as Swiss inflation remained within the bank's target range of 0-2% for the last 15 months, with a mere 0.8% increase in September, marking the lowest level in over three years.

Martin suggested that the SNB might eventually consider negative interest rates again, following similar remarks by SNB Chairman Martin Schlegel last week.

The SNB previously implemented negative rates to stabilize the franc but exited that policy in September 2022 when it began raising rates to combat inflation.

Maintaining a differential in interest rates compared to other central banks is crucial for influencing the exchange rate, which impacts inflation. Nevertheless, with inflation comfortably within target, Martin affirmed that the SNB is currently in a stable position.

> "There are imaginable scenarios where this is a tool that we would use because it's a particularly useful tool," he remarked, regarding negative rates.
> "But we're not today in a situation that this is something that we're considering."