Swiss Franc Might Remain Firm on ECB Rate Cuts, Safe-Haven Demand -- Market Talk
swiss franc inflation fell in October, and the probability of a significant interest rate cut in November increased!
Swiss inflation has once again slipped, increasing the likelihood of the Swiss National Bank implementing negative interest rates. The Swiss consumer price index (CPI) in October fell by 0.1% month-on-month, with a year-on-year growth rate dropping to 0.6%, below the Swiss National Bank's expected average inflation of 1.0% for the fourth quarter. Following the release of the news, the Swiss franc depreciated against all G10 currencies. Deutsche Bank forex analyst George Saravelos stated: "Swiss inflation data has further declined into deflationary territory, and we believe the possibility of negative interest rates has once again increased." The Swiss National Bank's next decision will be made at 16:30 on December 12, Beijing time.
The Swiss inflation rate in October dropped to 0.6% for more than three years, lower than expected.
Swiss Federal Statistics Office data shows that Switzerland's October consumer price index (CPI) inflation rate fell to 0.6%, the lowest level since June 2021, below the market's expected 0.8%, compared to 0.8% in September. Housing and energy inflation slowed to 3.5%, while transportation prices fell by 2.7%. Compared to the previous month, CPI slightly decreased by 0.1%, not rising for the fifth consecutive month, reasons include decreases in hotel prices and international tour package prices. Prices of rbob gasoline, diesel, and fruits and vegetables also decreased.
Swiss inflation drops to the lowest level in three years, the central bank is determined to cut interest rates in December.
In October, the inflation rate in swiss franc decreased to the lowest level in more than three years, indicating that the Swiss National Bank will further cut interest rates in both this year and 2025.
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