Swiss National Bank chairman notes impact of German industry weakness on Swiss manufacturing

Swiss National Bank Chairman Martin Schlegel stated that the weakness in German industry is negatively impacting demand in Switzerland's manufacturing sector. He highlighted that Germany's economic struggles are affecting Swiss manufacturers, as Germany is Switzerland's largest trade partner. In 2024, the Swiss National Bank has cut its benchmark interest rate three times, bringing it down to 1%. The central bank is expected to make further cuts, with markets predicting a 72% chance of a 25 basis point reduction at the upcoming meeting on December 12. Swiss inflation has slowed significantly, reaching 0.6% in October, the lowest in over three years. This decline in inflation has contributed to the recent interest rate cuts by the Swiss National Bank.