The yield on the 10-year Swiss government bond rose further to 0.35%, its highest in over a month, as traders evaluated the outlook for interest rates and the global economy. Domestically, traders have raised their expectations for additional policy easing by the Swiss National Bank this year, given the continued strong disinflationary risks, likely in March and June. December saw Swiss consumer price inflation ease to 0.6%, matching October's lowest level since June 2021, down from 0.7% the previous month. This supported the Swiss central bank's decision to cut its key rate for the fourth consecutive meeting in December, with inflation averaging 1.1% in 2024, well within the SNB's target range of 0% to 2%. New chairman Martin Schlegel has recently indicated that more rate cuts are likely, with negative interest rates remaining a possible tool to manage the currency and protect exports.
You are viewing a single comment's thread from: