Goldman Sachs now sees the SNB delivering more easing

Goldman Sachs now sees the SNB delivering more easing following today’s lower than expected inflation data

Full Story via Newsquawk on PiQ Suite

• GS writes given the SNB’s dovish guidance at its September meeting, benign inflation developments, a rise in geopolitical tensions adding further upward pressure to the currency, and Chairman Schlegel’s recent comments emphasizing the SNB’s commitment to keep CHF appreciation at bay

• GS now expects a further cut of 25bps at the March 2025 meeting, to a terminal rate of 0.5%

• GS sees risks skewed towards more easing in the event of further downside surprises to inflation and CHF strength, and assigns a 40% probability to a 50bps move in December.

This article was written by Ryan Paisey at www.forexlive.com.