Free Trial

MNI WATCH: SNB Holds Policy Rate At 1.75%, But Battle Not Won

(MNI) LONDON

Lower inflation and a conditional outlook means the time is right to assess the effect of previous policy decisions, Chairman Thomas Jordan says.

Weak growth and the expected passthrough of previous monetary policy tightening prompted the Swiss National Bank to hold its key policy rate of interest at 1.75% on Thursday, although it said further hikes have not been ruled out. (See MNI SNB WATCH: SNB Weighs 25Bp Hike)

Inflation fell to 1.6% in August, inside the SNB’s tolerance band of 0-2%. Overall, the medium-term projection dipped slightly, averaging 2.2% for 2023 and 2024, and 1.9% in 2025, with the Swiss economy also seeing the effects of monetary tightening by other central banks.

Keep reading...Show less
241 words

To read the full story

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.

Weak growth and the expected passthrough of previous monetary policy tightening prompted the Swiss National Bank to hold its key policy rate of interest at 1.75% on Thursday, although it said further hikes have not been ruled out. (See MNI SNB WATCH: SNB Weighs 25Bp Hike)

Inflation fell to 1.6% in August, inside the SNB’s tolerance band of 0-2%. Overall, the medium-term projection dipped slightly, averaging 2.2% for 2023 and 2024, and 1.9% in 2025, with the Swiss economy also seeing the effects of monetary tightening by other central banks.

Keep reading...Show less