📝SNB to Deliver One Last Policy Rate Hike: UBS

UBS European Economist, Felix Huefner, expects the Swiss National Bank to deliver a final 25bp rate hike on Sept. 21, bringing the policy rate to 2%. This call is based on the policy rate differential between the SNB and European Central Bank now standing at 225bp following last week's 25bp ECB hike, rising domestic inflationary pressures, and the SNB's June conditional inflation forecast which showed 2025/6 inflation above target at 2.1%. He believes these arguments outweigh the concerns over weakening growth momentum and a 2% appreciation in the Swiss Franc in nominal effective terms since the last meeting.

- UBS