Swiss annual inflation holds steady, spurs rate cut bets
Updates with analyst comment paragraphs 5-7
ZURICH, Aug 2 (Reuters) -Switzerland's annual inflation rate held steady at 1.3% in July, in line with analysts' expectations, figures from the Federal Statistics Office showed on Friday, encouraging bets that the central bank could lower borrowing costs again next month.
Compared to the previous month, Swiss consumer prices fell by 0.2%, a reading which also matched the consensus forecast of a Reuters poll of analysts.
July was the 13th month in a row that Swiss prices have been within the 0-2% range targeted by the Swiss National Bank (SNB), which the central bank describes as price stability.
The SNB lowered interest rates to 1.25% in June, the second cut in 2024, saying underlying inflationary pressure had eased. The central bank also lowered its inflation forecasts, fueling analyst expectations of a further rate cut in September.
GianLuigi Mandruzzato, an economist at EFG Bank, said the stabilisation in Swiss inflation backed the view that the SNB will ease monetary policy again in September.
"This is because July data are lower than the average 1.5% inflation the SNB projected for the third quarter.
"Furthermore, the renewed appreciation of the Swiss franc and the moderation in commodity prices point to lower Swiss inflation in the coming months," he added.
Writing by Dave Graham, Editing by Friederike Heine and Miranda Murray
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