In a more correct sense, will the Swiss central bank cut interest rates by 50 basis points instead of only 25.
The head of the Swiss National Bank, Jordan, said last week that a strong franc does not make things easier for the Swiss economy, and when you hear comments like these, you expect that the central bank may be planning its next step to adjust the direction of its currency.
When the Swiss National Bank was raising interest rates in the past, it needed a stronger franc to counter inflation, and not to let inflation get out of control, and indeed the Swiss National Bank did its part then and Swiss inflation did not rise to very high levels and soon returned to decline, the Swiss National Bank is one of the first large central banks that began to cut interest after inflation fell.
But a recent string of low inflation data has revealed that imported inflation is no longer a problem for the SNB, with the headline reading falling from 1.3% to 1.1%.
Taking all this into account, we expect that at their next meeting on September 26, they are about to cut interest rates by 50 basis points to weaken the franc, especially since the Fed will have started the first reduction of interest rates for the US dollar.
It is worth mentioning that this month is Thomas Jordan's last month as governor of the Swiss National Bank, will he do something memorable as his style has often been, or will he leave in peace and hold a last quiet meeting before being replaced by another governor of the bank.
