SNB’s hikes swing expectations, but its cuts do not – study
Swiss households respond to tightening and holding, but loosening fails to shift views
Households in Switzerland lower their inflation expectations after the Swiss National Bank (SNB) raises interest rates or holds them, but rate cuts fail to move expectations meaningfully, a study from the bank has found.
The research paper, published on September 10, finds the effect is strongest for short-term inflation expectations, while the impact on long-term expectations is less clear-cut.
The authors – Alexander Goetz, Lucas Kyriacou, Florence Miguet Heimlicher and Stefanie Siegrist – say
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