Posted on 06/20/2024 12:43:59 PM PDT by EBH
The Swiss National Bank on Thursday trimmed its key interest rate by 25 basis points to 1.25%, continuing cuts at a time when sentiment over monetary policy easing remains mixed among major economies.
Two thirds of economists polled by Reuters had anticipated the SNB would decide in favor of a 25-basis-point-cut to 1.25%.
The Swiss franc weakened in the wake of the announcement, with the Euro gaining 0.3% and the U.S. dollar up 0.5% against the Swiss currency at 8:55 a.m. London time.
Following the Thursday decision, the Swiss central bank pegged its conditional forecast for inflation at 1.3% for 2024, 1.1% for 2025 and 1.0% for 2026. The figures assumes a SNB interest rate of 1.25% over the prediction period.
The country’s inflation flatlined at 1.4% in May after a bump up in April and is expected to average the same level across full-year 2024, according to the SNB’s latest projections.
The Swiss bank said it now anticipates economic growth of around 1% this
(Excerpt) Read more at cnbc.com ...
i doubt Swiss are running a $2 trillion deficit - giving them room to cut.
U.S. journalists don’t get it.
The Fed’s target is 2 percent inflation. We’re not there yet.
Journalists are like a bunch of kids in the back seat. “Are we there yet? Are we there yet?”
Switzerland currently has 1 percent inflation. They’re there.
ALSO Switzerland is running a small surplus. We’re running a deficit 6 god damn percent of GDP.
With the unsustainable deficit that we have, it is very difficult for the central bank to achieve price stability (defined as 2 percent CPI inflation). Maybe even impossible.
Damn, that means I will get less interest for my money there :)
Switzerland doesn’t police and finance the world.
2% inflation is roughly 2% too high.
Is the inflation “good news” just data from a month extrapolated to an annual rate or based on data from the last 12 months?
What’s the forward looking projection?
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