ZURICH: The Swiss National Bank is not locked into more interest rate cuts in December, Vice Chairman Antoine Martin was quoted as saying in an interview published on Monday, despite previous comments it could trim borrowing costs after tackling inflation.

The SNB has been at the forefront of central banks cutting interest rates this year, with three reductions already and markets expecting a cut of at least 25 basis points from the current 1% level at its next meeting on Dec. 12.

At its last meeting in September, the SNB said it was ready to cut again, while both Martin and Chairman Martin Schlegel have recently floated the idea of lowering interest rates further and even taking rates below zero.

The cuts are possible after Swiss inflation was brought under control, with the rate just 0.6% in October, the lowest level in more than three years.

But nothing is set in stone, Martin told Swiss newspaper Le Temps.

“It’s not useful for central banks to lock themselves into forward-looking communications, since between now and the next decision, there may be changes in conditions that render current communications invalid,” Martin said.

This meant the SNB had made “absolutely no commitment” to its future course of action, Martin said in the interview, which took place before Donald Trump was elected next US president.

UBS fund management arm reports 3% stake in Swiss National Bank

“Everything will depend on conditions when we assess the situation in December,” Martin said.

Low Swiss inflation was one factor behind the rise in the Swiss franc in recent years, while the currency was also sought by investors as a safe haven in times of uncertainty, he added.

“Because of the inflation differential between Switzerland and other countries, we expect the Swiss franc to appreciate structurally over time in nominal terms,” he said.

“But in real terms, excluding the inflation effect, the appreciation has been limited,” Martin said, adding the franc’s appreciation this year was not particularly surprising or problematic.