CHF - one more rate cut?

Market implied policy rates suggest that investors are expecting the SNB to cut rates by 25 bp at the March 20 policy meeting. This would take rates down to 0.25%, the lowest since mid-2022. Market rates are also indicating that this will be the last move of the cycle. Expectations that the SNB’s rate cutting cycle is almost over is despite the very weak level of price pressures in Switzerland. February CPI inflation registered just 0.3% y/y and this was the sixth consecutive month showing a level below 1%. That said, as long as the inflation rate is between 0-2%, it falls within the SNB’s definition of price stability.