BENGALURU, Dec 12 Reuters The Swiss National Bank will hike its policy rate by a smaller 50 basis points on Thursday, as is also expected by the European Central Bank, according a majority of economists in a Reuters poll, with a significant minority expecting an even bigger move.

With inflation running well above the SNB39;s 2 target and a widening interest rate differential with the ECB putting pressure on the alreadyweakening Swiss franc , the chance of another 75 basis point move cannot be ruled out.

Despite inflation easing from a near 30year peak of 3.5 in the last few months, SNB Chairman Thomas Jordan recently said there was a high probability more monetary policy tightening was needed as inflation was likely to remain elevated.

Inflation was not expected to fall below 2 until 2024, the Dec. 712 Reuters poll also showed.

After the central bank raised its key policy rate by 75 basis points in September, lifting it out of negative territory for the first time since 2014, 18 of 28 economists expected it to go for a softer half percentagepoint hike to 1.00 this time, in line with market expectations.

The ECB, which has already added 200 basis points to its key interest rates compared with only 125 basis points by the SNB, was widely expected to go for an identical 50 basispoint move a few hours later.

The U.S. Federal Reserve was also expected to hike its key interest rates by an equivalent amount one day earlier.

In our view, the SNB will not know the outcome…