🏦🇨🇭Cable FX Macro Weekly Note: SNB Q2 Monetary Policy Decision

**As seen in Risk In The Week report 06/15/25, get full access now! cablefxm.co.uk

The SNB rate cut was in line with market expectations, with over 70% of traders and most economists polled by Reuters anticipating the quarter-point reduction.

Swiss inflation fell to 0.3% in February 2025, a near four-year low, driven by cheaper imports and falling electricity prices, despite higher domestic services costs. The SNB views inflation as well-contained within its 0–2% target range, with risks tilted downward due to weaker global growth and potential Swiss franc appreciation. The bank forecasts inflation at 0.6% for 2025 and 0.8% for 2026, both below earlier projections.

MUFG still estimates the SNB to stick to its plan to cut the policy rate by a further 25bps to 0.00% when it meets on June 19. Market participants are already anticipating that the SNB may even have to return to a negative rate policy at the following meeting in September if inflation continues to surprise to the downside and the Swiss franc (CHF) remains strong.