---
title: "UBS economists: The Swiss central bank needs more signs of deflation before further rate cuts"
description: "UBS economist Franziska Fischer stated that the Swiss National Bank may not further cut interest rates in the absence of medium-term deflationary pressures. She believes that the Swiss National Bank c"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/264034075.md"
published_at: "2025-11-03T13:12:37.000Z"
---

# UBS economists: The Swiss central bank needs more signs of deflation before further rate cuts

> UBS economist Franziska Fischer stated that the Swiss National Bank may not further cut interest rates in the absence of medium-term deflationary pressures. She believes that the Swiss National Bank considers the inflation outlook to be consistent with the price stability target, and the impact of tariff shocks on economic growth is moderate. If negative interest rates are to be considered, three conditions must be met: a significant weakening of the Swiss economic outlook, a rate cut by the European Central Bank to narrow the interest rate differential, and ongoing pressure for the Swiss franc to appreciate. In October, Switzerland's inflation rate slightly decreased to 0.1%

UBS economist Franziska Fischer stated in a report that the Swiss National Bank may not cut interest rates again, as it expects insufficient medium-term deflationary pressures. She noted, "Our interpretation is that the Swiss National Bank currently believes the inflation outlook is consistent with the price stability target and considers the impact of tariff shocks on economic growth to be moderate." Fischer also pointed out that for the Swiss National Bank to consider negative interest rates, three conditions need to be met simultaneously: a significant weakening of the Swiss economic outlook, further interest rate cuts by the European Central Bank to narrow the interest rate differential, and sustained upward pressure on the Swiss franc, all of which would significantly worsen the medium-term inflation outlook. Switzerland's inflation rate in October slightly decreased from 0.2% in September to 0.1%

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.