(Bloomberg) -- Economists at UBS Group AG expect a first cut in interest rates by the Swiss National Bank in June — bringing forward a previous projection for borrowing costs to be lowered from September.

After inflation unexpectedly slowed in November, the risk of it breaking through the SNB’s 2% ceiling in the coming months has receded, Maxime Botteron, Alessandro Bee, Florian Germanier and Matteo Mosimann said Wednesday in a report to clients. 

A quarter-point reduction in June will be followed by two more of that size in September and December, they predicted, bringing the key rate to 1% by end-2024. They expect the SNB to hold borrowing costs steady until June.

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