SNB Could Cut Rates to Stem Franc's Strength -- Market Talk
Swiss Central Bank's Stance Could Weigh on Franc -- Market Talk
Swiss franc's seasonally adjusted unemployment rate rose to 2.5% in July.
On August 6, Guolonghui reported that the seasonally adjusted unemployment rate in Swiss was 2.5% in July, the highest level since December 2021; expected 2.50%, previous value 2.40%.
Swiss franc CPI rose 1.3% year-on-year in July.
On August 2nd, Guolonghui reported that the Swiss CPI annual rate for July was 1.3%, as expected, with a previous value of 1.3%; the monthly rate was -0.2%, the largest decrease since November 2023, with an expected decrease of -0.20% and a previous value of 0.00%.
Swiss National Bank's interest rate cut cycle is nearing its end: economists predict the last rate cut will be in September.
According to a survey conducted from July 5th to 11th, the Swiss National Bank's last interest rate cut of 25 basis points will take place in September. Prior to this, the bank had already cut interest rates twice in March and June.
Commodity costs have decreased, and Swiss franc inflation has unexpectedly slowed down.
On July 4th, GuoLianHui reported that the unexpected easing of Switzerland's inflation has put Swiss central bank officials at ease. The Swiss Federal Statistical Office said on Thursday that CPI rose 1.3% from the same period last year in June. This increase was lower than economists' expectations and also lower than May's 1.4% increase, the fastest increase this year. Compared with the same period last year, commodity costs fell by 0.2%, while services increased by 2.4%, which played a role in cooling the economy. The core inflation rate also fell to 1.1%. The Swiss National Bank has cut interest rates in its most recent two meetings and launched an easing policy before global peers such as the European Central Bank. Given that the benchmark interest rate in Switzerland is currently 1.25.