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The silence of the Swiss National Bank makes interest rate cuts uncertain.
The decision of the Swiss National Bank this week will be another tense event, as officials decide whether to cut interest rates or maintain them. Thursday's decision comes three weeks after Swiss National Bank policymakers last publicized their comments, with investors speculating on the prospect of further action in the market volatility and the appreciation of the Swiss franc. Economists have varying views on the outcome, with a few predicting that Switzerland will be the first country to end its easing cycle. In March, Switzerland's interest rate cut made it the fastest-cutting country among the top 10 trading currencies globally. Compared with other countries,
European Central Bank committee member Vitor Constancio is optimistic: if inflation continues to cool, further interest rate cuts may be possible.
In the European Central Bank's latest statement, Commissioner Mario Centeno revealed a positive outlook on monetary policy.
The outlook for a rate cut by the Swiss Central Bank remains unclear, with overnight hedge costs for the Swiss franc seeing their largest increase since 2015.
The Swiss National Bank will make the next interest rate decision on Thursday, and it is uncertain whether decision makers will choose to cut interest rates and imply support for the Swiss franc through intervention.
Swiss franc central bank officials remain silent, again raising expectations of interest rate cuts.
The Swiss National Bank will announce its interest rate decision on Thursday.
SNB Silence Sets Up Another Rate-Cut Cliffhanger
The Swiss National Bank decision this week is set to be another nail-biter on whether officials will cut their interest rate or stay on hold.
Euro Trades Higher on the Day, Eyeing 1.0750 – Scotiabank
The Euro (EUR) is modestly higher on Tuesday's session, reflecting a mild narrowing in 10Y OAT/Bund spreads. The gap remains relatively significant (75bps), however, as tensions in the Eurozone persist, Scotiabank’s Chief FX Strategist Shaun Osborne notes.