Free Trial

MNI INTERVIEW: SNB June Hold, But Sept Cut Possible - Lein

(MNI) LONDON

Swiss economist Sarah Lein discusses SNB monetary policy.

The Swiss National Bank is set to hold its policy rate at 1.5% in June even as recent franc appreciation puts downward pressure on prices, leading Swiss economist Sarah Lein told MNI, though it is likely to cut rates by 25 basis points in September if inflation comes in lower than its projected 1.5%.

Core inflation of around 1%, plus downward pressure on import prices since May, suggest the SNB can expect inflation to stabilise close to its likely target of 1% "in 2025/26" without further raising or lowering interest rates, Lein said in an interview. (See MNI INTERVIEW: SNB Cut Or Hold Decision "50:50" - Wyplosz)

Keep reading...Show less
539 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Swiss National Bank is set to hold its policy rate at 1.5% in June even as recent franc appreciation puts downward pressure on prices, leading Swiss economist Sarah Lein told MNI, though it is likely to cut rates by 25 basis points in September if inflation comes in lower than its projected 1.5%.

Core inflation of around 1%, plus downward pressure on import prices since May, suggest the SNB can expect inflation to stabilise close to its likely target of 1% "in 2025/26" without further raising or lowering interest rates, Lein said in an interview. (See MNI INTERVIEW: SNB Cut Or Hold Decision "50:50" - Wyplosz)

Keep reading...Show less