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MNI SNB Review: September 2023 - More Tightening May Be Needed

Executive Summary:

  • Bank unexpectedly held policy unchanged, defying forecasts for a final hike.
  • Statement makes clear that hiking cycle so far has aided decelerating inflation.
  • Bank unlikely to drop message that more tightening may be required ahead.
Our full review including a summary of sell-side views can be found here:

MNI SNB Review September 2023.pdf

The SNB defied broad consensus and market expectations for a final rate hike to 1.75%, instead opting to keep policy unchanged, point to softer near-term economic activity and signal that rate hikes remain a possibility ahead. Nonetheless, markets and consensus have been quick to factor out any expectations of further hikes, leaving markets looking at a peak of the cycle at 1.75%.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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