Free Trial

MNI SNB WATCH: To Cut and Signal More As Inflation Undershoots

Continued inflation undershoots keep SNB on easing path.

MNI (LONDON) - The Swiss National Bank is primed to cut rates on Thursday, with a 25 basis-point cut in the Policy Rate to 0.75% looking the most likely outcome, although a bolder 50bp reduction cannot be ruled out, given the continued undershooting of its own inflation forecasts.

Market pricing is split down the middle, with a 50% chance of a 50bp cut, though analysts and economists are leaning slightly towards a smaller reduction, particularly as Q3 growth outperformed expectations at 0.2% q/q following growth of 0.4% in Q2.

Keep reading...Show less
253 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.

MNI (LONDON) - The Swiss National Bank is primed to cut rates on Thursday, with a 25 basis-point cut in the Policy Rate to 0.75% looking the most likely outcome, although a bolder 50bp reduction cannot be ruled out, given the continued undershooting of its own inflation forecasts.

Market pricing is split down the middle, with a 50% chance of a 50bp cut, though analysts and economists are leaning slightly towards a smaller reduction, particularly as Q3 growth outperformed expectations at 0.2% q/q following growth of 0.4% in Q2.

Keep reading...Show less