Research & Analysis
Swiss National Bank Expected to Maintain Policy Rate Amid Strong Economic Indicators
- 2024-09-26
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✅𝐓𝐡𝐞 𝐒𝐰𝐢𝐬𝐬 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐁𝐚𝐧𝐤 (𝐒𝐍𝐁) is expected to hold its policy rate steady at 1.75% in its September 2024 meeting, contrary to consensus 𝐞𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐟 𝐚 𝟐𝟓𝐛𝐩𝐬 𝐜𝐮𝐭.
✅𝐂𝐢𝐭𝐢 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬 𝐬𝐭𝐚𝐧𝐝𝐬 𝐨𝐮𝐭 𝐚𝐬 𝐚 𝐡𝐚𝐰𝐤𝐢𝐬𝐡 𝐨𝐮𝐭𝐥𝐢𝐞𝐫, citing robust economic growth and persistent domestic inflation as reasons for maintaining the current rate.
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𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐢𝐦𝐩𝐚𝐜𝐭𝐬:
✅ 𝐂𝐇𝐅 𝐜𝐨𝐮𝐥𝐝 𝐬𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧 𝐢𝐧𝐢𝐭𝐢𝐚𝐥𝐥𝐲 𝐨𝐧 𝐚 𝐡𝐨𝐥𝐝 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧, as markets have priced in a cut.
✅ Divergence from ECB policy could widen interest rate differentials, potentially supporting CHF
✅ Swiss exporters may face continued headwinds from a strong franc if rates remain unchanged
✅ Financial markets may need to reassess their expectations for the SNB's future policy path
✅ Governor Jordan's press conference comments will be closely watched for hints on future policy direction.
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