SNB to hold fire this week, a 25 bps September rate hike likely – Reuters poll

A majority of the economists polled by Reuters revealed on Tuesday, the Swiss National Bank (SNB) is unlikely to change its negative interest rate policy this Thursday even as the country’s inflation rate remains at a 14-year high.

Key takeaways

“Twenty-four of 26 economists expect the SNB to keep its policy rate steady at minus 0.75%, the lowest in the world and the rate it has maintained since 2015.”

“Two respondents expect a 25 basis point rate rise from the SNB, which last raised rates 15 years ago.”

“A further 19 of 26 economists forecast the SNB policy rate to reach -0.50%, where the ECB’s rate is now, or higher at the September meeting.”

“Four of those expect rates at -0.25% by then, implying two quarter-point or one half-point rate rises.”

“Only 6 of 26 expect the rate to be at zero or higher by the end of the year.”

“A majority, 17 of 23, said rates would be zero or higher only by the end of the first quarter of next year.”

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