Express News | Pan Sheng Macro: The Swiss National Bank will continue to cut interest rates.
The Swiss National Bank persists in steadily lowering interest rates to curb the strength of the Swiss franc.
The Swiss National Bank has lowered the policy interest rate by 0.25 percentage points to 1.0% to address the easing of Swiss inflationary pressures. The central bank also warns that if necessary, more measures will be taken to curb the strength of the Swiss franc.
One picture: 21 central banks have cut interest rates by more than 50 basis points, how will the Swiss National Bank's decision affect the Swiss franc?
The Swiss National Bank will announce its interest rate decision at 15:30 on Thursday (September 26) Beijing time. The median expected from media surveys shows that the Swiss National Bank is expected to cut rates by 25 basis points to 1.00%. However, some in the market are betting that the Swiss National Bank will cut rates by 50 basis points. Let's take a look at the latest developments in central bank decisions in 168 countries/regions globally, as well as the analysis of the USD/CHF exchange rate.
Swiss National Bank Meeting: Will the interest rate be cut by 25 basis points or 50 basis points?
The timing for the Swiss National Bank (SNB) to cut interest rates again has arrived. The market currently believes that there is a 49% chance that the Swiss National Bank will choose to cut rates by 50 basis points on Thursday, completely digesting the possibility of a third consecutive 25 basis point cut to 1.0%.
Swiss franc's economy grew by 1.2% this year, lowering next year's growth forecast to 1.6%.
The State Secretariat for Economic Affairs (SECO) of Switzerland predicts a 1.2% economic growth this year, which is lower than the long-term average of 1.8% and the same as the forecast in June. The forecast for economic growth next year has also been revised down by 0.1 percentage points to 1.6%. Authorities state that the challenging economic environment, especially in Europe, as well as the recent appreciation of the Swiss franc, which affects export-oriented businesses sensitive to exchange rates, have affected economic growth. Authorities also point out that Switzerland's economy grew significantly in the second quarter, driven mainly by the chemical and pharmaceutical industries and strong goods exports, but other industries and domestic demand have shown weakness. Current indicators suggest moderate short-term economic growth in Switzerland.
Swiss authorities have significantly lowered their inflation forecasts for the next two years, and the Swiss central bank is expected to cut interest rates again next week.
The Swiss government significantly lowered its inflation expectations on Thursday, which is in line with the market's anticipation of another interest rate cut at the Swiss central bank's policy meeting next week.