 Swiss Franc is trading as the day's most significant loser in the wake of SNB's surprising decision to cut interest rates. This move, along with a substantial downward revision of inflation forecasts, is seen by some economists as a strategic effort by SNB to alleviate the burden of a high exchange rate on Switzerland's export-driven economy. Speculation is rife among economists about the possibility of another rate reduction in June, particularly if ECB commences its policy easing by then. British Pound also faced downward pressure as the second worst performer, following BoE decision to maintain its interest rate unchanged. Notably, two previously hawkish members abandoned their stance on calling for a hike. Yet BoE provided no definitive guidance on rate reductions. Despite some progress in reducing inflation, service sector prices continue to be a concern, remaining stubbornly high... |
