Switzerland SNB rate announcement – 09:30 BST
The SNB is expected to keep the CHF 3-month Libor on hold at 0.25%, in a range of 0% to 0.75%. The main reason for the SNB’s reluctance to increase interest rates is the Swiss franc, which is showing no signs of depreciating, especially against the euro. Indeed, Switzerland’s nominal MCI is at record highs, which means that the country imports disinflation. Growth is holding up, although it moderated in Q1 on the back of slower investment activity. Overall, we believe the SNB should remain constructive on growth, and reiterate that rates have to be adjusted at some point; however, the timing of this will also depend on the CHF.
Last Median Forecast
Target rate 0.25% 0.25% 0.25%
HSBC Global Research