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September SNB MPA preview: Policy to ignore falling inflation
Speculation about another tightening at this week’s Monetary Policy Assessment (MPA) has eased somewhat in the wake of the recent slew of weak real economy data, sub-2 percent readings on both headline and core inflation, and local currency strength. The last change in June lifted the policy rate by 25 basis points to 1.75 percent, its fifth successive increase in the current cycle but also the smallest. Since then, the official rhetoric has remained moderately hawkish but lacked some of its earlier conviction. Still, the market consensus is that the central bank’s determination to get inflation sustainably below ... (full story)