TRUDEAU SAYS IT LOOKS LIKE BOC WILL BE LOWERING RATE AGAIN

MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

SNB: Martin Affirms Pricing for a Policy Rate Cut at December Meeting

SNB
SNBCentral Bank NewsSwitzerlandCEEMEABulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

SNB vice president Antoine Martin's speech in Zurich appears to not have indicated a significant shift in SNB policy after the presidency change on October 1. Key quotes all mirror usual themes (per Bloomberg, speech titled "Current economic situation and SNB’s monetary policy", no text online):

  • "Inflation And Growth Point Toward Lower Rates"
  • "Policy Rate Is The Primary Tool"
  • "Likely That Inflation Will Decrease"
  • "See Satisfactory Growth, But Not Quite At Potential"
  • "Don't Have Great Tools When Inflation Is Too Low"
  • "Currently Don't See Need To Take Rate Below 0%"

This leaves SNB cut expectations for the next meeting (which can be volatile in the short term) overall without a meaningful change since yesterday's close at 31bp - around a 25% implied chance of an outsized 50bp December cut assuming a 25bp base case.

127 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.

SNB vice president Antoine Martin's speech in Zurich appears to not have indicated a significant shift in SNB policy after the presidency change on October 1. Key quotes all mirror usual themes (per Bloomberg, speech titled "Current economic situation and SNB’s monetary policy", no text online):

  • "Inflation And Growth Point Toward Lower Rates"
  • "Policy Rate Is The Primary Tool"
  • "Likely That Inflation Will Decrease"
  • "See Satisfactory Growth, But Not Quite At Potential"
  • "Don't Have Great Tools When Inflation Is Too Low"
  • "Currently Don't See Need To Take Rate Below 0%"

This leaves SNB cut expectations for the next meeting (which can be volatile in the short term) overall without a meaningful change since yesterday's close at 31bp - around a 25% implied chance of an outsized 50bp December cut assuming a 25bp base case.