Market analysts are unsure which way the Swiss National Bank may jump today.
Every three months the bank sets interest rates – and economists agree on only one thing – there are good arguments for a cut, and good arguments to do nothing.
A UBS analyst called it a ‘coin toss.’
After a cut in December, the key rate is at 0.5%.
Arguments for a cut include the increasing uncertainty surrounding trade tariffs. This country is highly exposed to high tariff risks. But a rate cut could lower the franc and help exporters.
But there’s disagreement over how much impact rates would have on the exchange rates.
Inflation is down to 0.2% - the lower end of the target – which calls for a cut.
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