SNB - 25bp Rate Cut To 1.00% (Consensus 1%) in Sep-24
- The SNB cut its policy rate to 1.0%, matching the consensus, reflecting reduced inflationary pressures mainly due to franc appreciation and energy price reductions.
- Inflation forecasts have been lowered, with the SNB projecting 1.2% for 2024 and 0.6% for 2025, suggesting further rate cuts may be necessary to maintain price stability.
- While domestic growth remains solid, risks from the global economy, currency appreciation, and geopolitical tensions continue to weigh on the medium-term outlook.
Switzerland Policy Rate 1.25% in Jun-24
- The SNB cut its policy rate by 25 basis points to 1.25%, in line with consensus expectations, to support economic activity while maintaining price stability.
- Inflation dynamics, global economic conditions, and domestic economic performance will influence future interest rate decisions, which focus on ensuring inflation remains within the target range.
- The SNB remains vigilant and flexible, prepared to adjust monetary policy as necessary to respond to evolving economic indicators and inflation developments.
Switzerland Unemployment Rate 2.4% in May-24
- Switzerland's unemployment rate increased to 2.4% in May 2024 (seasonally adjusted), reflecting an ongoing deviation from average levels and indicating potential labour market weakness.
- Mixed economic indicators, including negative consumer confidence and contracting manufacturing activity, contrast with modest GDP growth and robust retail sales, highlighting underlying economic challenges.
Switzerland CPI Inflation 1.4% y-o-y (consensus 1.4%) in May-24
- Switzerland's CPI inflation rate remained steady at 1.4% y-o-y in May 2024, matching consensus expectations and the previous month's rate, with minor deviations from historic averages.
- The 0.3% m-o-m CPI increase in May 2024, alongside a 0.6% m-o-m PPI increase in April 2024, indicates controlled price transmission and effective measures ensuring consumer price stability.
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