Swiss rate-setters are widely expected to hold their key rates at current levels Thursday, a stance they may adopt for the longer term, according to analysts.

An economists’ poll predicted an unchanged Swiss National Bank policy rate of zero percent, with only very few analysts noting that the bank could lower its benchmark rate into negative territory at -0.25%. A hold this month would repeat the decision in September, which followed six straight reductions, including cuts of 25 basis points in June and March, and 50bp last December. 

Headline annual inflation in the Alpine country last month dropped to zero from 0.1% in October, keeping it at the bottom of the SNB target range of 0-2%. November consumer prices contracted -0.2% on the month versus the previous flat reading. But this increased weakness in consumer price growth is unlikely to spur officials into a rate cut on Thursday. (LS Continue Reading) 

Australia’s economy unexpectedly shed jobs and fewer people sought work, suggesting a gradual loosening in the labour market that may allow the Reserve Bank to extend an interest-rate pause.

Employment fell by 21,300 — driven by full-time roles — and compared with an expected 20,000 gain, data from the Australian Bureau of Statistics showed Thursday. The jobless rate held at 4.3% in November compared with economists’ forecasts for a tick-up to 4.4%. (BBG – Continue Reading) 

President Donald Trump on Wednesday said the Federal Reserve’s latest decision to cut benchmark interest rates by a quarter percentage point could have been “at least doubled.” 

Trump, who has long urged the central bank to slash rates in order to spur further economic growth, called Fed Chair Jerome Powell “a stiff” who approved a “rather small” cut. 

Trump, who has made no secret of his disdain for Powell, also said he plans to interview former Fed Governor Kevin Warsh later Wednesday. (CNBC – Continue Reading)