(fxcue news) - The Switzerland market started off on a firm note Thursday morning, but pared gains and very nearly slipped into the red by early afternoon, before recovering well to end the day's session moderately higher. Investors digested the Swiss National Bank's interest rate move, and awaited some key economic data from the U.S. The benchmark SMI ended with a gain of 61.24 points or 0.5% at 12,209.62, nearly 60 points off the day's high of 12,267.86 The Swiss National Bank reduced its key policy rate by 25 basis points for the third straight meeting on Thursday, lowering it to 1% from 1.25%, as expected. Banks' sight deposits held at the SNB will be remunerated at the SNB policy rate up to a certain threshold, and at 0.5% above this threshold, the bank said. "Further cuts in the SNB policy rate may become necessary in the coming quarters to ensure price stability over the medium term," the bank said in a statement. The Swiss central bank sees inflation at 1.2% this year, down from the previous forecast of 1.3%. The projection for 2025 was trimmed to 0.6% from 1.1%. For 2026, inflation is estimated at 0.7% compared to 1% projected in June. The economic growth is projected to be around 1% this year, which was unchanged from the previous outlook. . Swatch Group shares zoomed more than 12%. Richemont rallied 8%, and VAT Group ended 5.4% up. Julius Baer, Logitech International, Adecco, Straumann Holding and UBS Group gained 2.3 to 3%. Partners Group climbed 1.7%, and Lonza Group ended 1.3% up. Holcim, ABB, Sika, Sandoz Group, Sonova and Schindler Ps also ended notably higher. Lindt Spruengli dropped about 3.2%. Novartis and Givaudan ended lower by 1.47% and 1.3%, respectively. SIG Group, Kuehne + Nagel and Geberit also closed weak.