The Swiss National Bank will complete its tightening cycle in June before keeping rates constant for more than a year, according to a Bloomberg survey of economists.
(Bloomberg) — The Swiss National Bank will complete its tightening cycle in June before keeping rates constant for more than a year, according to a Bloomberg survey of economists.
Officials will round off 225 basis points of interest-rate increases with a final 25 basis-point step, bringing the policy rate to 1.75%, according to the median forecast in the poll conducted April 5-13. After that they will hold through September 2024, when a cut is seen.
Previous forecasts expected the SNB to pause after last month’s hike — the addition move comes against the backdrop of higher-than-expected inflation.
SNB chief Thomas Jordan on Friday reaffirmed that more tightening is possible and investors will be watching his two fellow rate setters — Martin Schlegel and Andrea Maechler — for similar comments when they both speak on Wednesday.
Economists expect Swiss consumer-price growth of 2.5% this year and 1.5% in 2024, raising projections after the SNB also did so at its March rate decision.
Swiss inflation still remains the slowest in Europe, and SNB interest rates also are lower than its peers’ across the region.
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