Latest economic forecasts released by SECO – 17 September 2019
- 2020 GDP growth forecast 1.7% (unchanged)
- 2019 inflation forecast 0.5% (previously 0.6%)
- 2020 inflation forecast 0.4% (previously 0.6%)
Not the most surprising of things and the downgrades to the inflation forecasts should see a similar move by the SNB later this week as well.
It remains to be seen if the SNB will cut rates later this week as there is an argument that they may want to keep some capacity in case a no-deal Brexit materialises. The fact that the franc hasn’t significantly strengthened against the euro despite the ECB decision last week may give time some room to tinker with, but don’t expect that to last long.