According to a survey conducted from July 5 to 11, the last 25 basis points cut interest rates by the SNB will take place in September, after the bank had already cut interest rates twice in March and June.
The Zhitong Finance App notes that a survey of economists shows that the SNB will only cut interest rates once more this cycle.
According to a survey conducted from July 5 to 11, the last 25 basis points cut interest rates by the SNB will take place in September, after the bank had already cut interest rates twice in March and June. This would lower the benchmark interest rate to 1%.
The SNB is the first major developed economy central bank to launch an easing policy this year, and can stop raising interest rates before other central banks around the world. This is mainly because when the inflation crisis hit, Switzerland's inflation rate was one of the lowest in the world.
Central Bank Governor Thomas Jordan said earlier this month that he was “relatively satisfied” with the country's consumer price outlook.
Switzerland's inflation rate in June rose 1.3% from the same period last year. The economists surveyed expect the inflation rate to remain at this level in the third and fourth quarters, and slow further next year. This is perfectly in line with the SNB's 0-2% target range.