SNB cuts rates by 25 bps, CHF reacts
The Swiss National Bank (SNB) cut its key interest rate by 25 basis points to 1.25%, amid mixed global monetary policy stances. Two-thirds of economists predicted this move, leading to a weakened Swiss franc, with the Euro up 0.5% and the US dollar rising 0.7%. The SNB forecasts inflation at 1.3% for 2024, 1.1% for 2025, and 1.0% for 2026, with economic growth projected at 1% this year and 1.5% in 2025. Inflation held steady at 1.4% in May and is expected to average the same for 2024. Analysts suggest another rate cut may come in September, with potential for a fourth in December, leaving the Swiss franc vulnerable. Economic activity is expected to gradually improve, supported by stronger international demand. Observers are also watching the US Federal Reserve and Bank of England for potential rate changes, following the UK's recent inflation easing to its 2% target for the first time in nearly three years.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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