Strong franc to tee up more SNB rate cuts under Schlegel
June 27 (Reuters) - The Swiss National Bank looks set to deliver more interest rate cuts through the handover of the chairman's baton from Thomas Jordan to Martin Schlegel, provided the franc remains strong.
Schlegel takes over on Oct. 1, a few days after the next SNB rate announcement, and will serve until 2027.
Last week's SNB rate cut was delivered after the franc rose to a four-month high against the euro and a three-month high against the dollar.
If CHF strength persists, it should help to keep Swiss CPI below the 2% peak of the central bank's target range - and unlock the door to more rate cuts.
Swiss CPI data for June is due next week (July 4). It printed at 1.4% YY in May, the same level as in April.
Markets currently see a 43% chance of the SNB delivering a third consecutive rate reduction on Sept. 26, just before Schlegel takes charge. 0#SNBWATCH
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Robert Howard is a Reuters market analyst. The views expressed are his own; Editing by Kevin Liffey
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