Monetary Policy Outlook October 2024
The sharp disinflation in Switzerland should prompt the SNB to cut its key interest rate again at its December meeting. Further steps next year seem likely, as despite several cuts, the SNB remains behind market expectations. Internationally, the Fed is expected to cut its rate by only 25bps next week – while keeping its approach for the last meeting of the year open. The ECB, on the other hand, is expected to overlook a more aggressive approach of 50bps despite a sharp drop in inflation and a weak economy.