SNB Rate Cut Bets Soar as Swiss Franc Weakens Amid Soft Inflation and Manufacturing Contraction

The Swiss franc has weakened against major currencies following the release of softer-than-expected inflation data and a contraction in the country's manufacturing sector.

The inflation rate for [Month/Year] rose by [X]% year-on-year, below both the previous month's reading and analyst forecasts. The procure.ch/Swiss Manufacturing PMI fell to [Y] points in [Month], dipping further into contraction territory (below the 50.0 threshold).

The SNB has room to ease monetary policy as inflation now runs below its target range of 0-2%. A rate cut would make Swiss franc-denominated assets less attractive, further weakening the currency and providing relief to the manufacturing sector.