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MNI SNB WATCH: SNB Cuts 50BP With Room To Manoeuvre

The SNB cuts rates and outlines policy space if needed ahead.

MNI (LONDON) - The SNB cut its key policy rate by 50 basis points to 0.5%, with the rate on excess sight deposits cut to 0%, the Board announced on Thursday, adding that it remains willing to be active in the foreign exchange market as necessary. (See MNI SNB WATCH: To Cut and Signal More As Inflation Undershoots )

President Martin Schlegel, noted that markets were pricing in a terminal rate of 0% some time in 2025, but avoided making any comment as to the SNB's rate path or whether it was clear rates would fall further. Monetary conditions were "appropriate,” he said, speaking in his first press conference at the head of the Bank, adding that there was room for further policy manoeuvring, but without directly addressing the possibility of a future move back to negative interest rates.

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MNI (LONDON) - The SNB cut its key policy rate by 50 basis points to 0.5%, with the rate on excess sight deposits cut to 0%, the Board announced on Thursday, adding that it remains willing to be active in the foreign exchange market as necessary. (See MNI SNB WATCH: To Cut and Signal More As Inflation Undershoots )

President Martin Schlegel, noted that markets were pricing in a terminal rate of 0% some time in 2025, but avoided making any comment as to the SNB's rate path or whether it was clear rates would fall further. Monetary conditions were "appropriate,” he said, speaking in his first press conference at the head of the Bank, adding that there was room for further policy manoeuvring, but without directly addressing the possibility of a future move back to negative interest rates.

Keep reading...Show less