Thanks. I think that the release is broadly in line with the previous one. Moderation in housing rental and cuts in electricity prices will add to the disinflationary picture in 2025 and might require an adjustment in the conditional inflation forecast. Overall though, unless something happens, I don't see 50bps in December. I do see the possibility that SNB might reach very low rates in 2025. But I would wait to see how the new U.S. administration will shape its policy then.
Great note as usual! Any views on the likelihood of a bigger cut in December or if the SNB will take rates to zero or below (in 2025 or beyond)?
Thanks. I think that the release is broadly in line with the previous one. Moderation in housing rental and cuts in electricity prices will add to the disinflationary picture in 2025 and might require an adjustment in the conditional inflation forecast. Overall though, unless something happens, I don't see 50bps in December. I do see the possibility that SNB might reach very low rates in 2025. But I would wait to see how the new U.S. administration will shape its policy then.