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MNI BRIEF: SNB Hikes By 50bps, Raises 2025 Inflation Forecast

(MNI) London

The Swiss National Bank raised policy rate by 0.5% to 1.0% at its December monetary assessment Thursday, as expected with sight deposits above the tiering threshold remunerated at 0.5% (SNB WATCH: 50bps Hike As Inflation Eases, Rate Peak Nears)

Annual inflation is conditionally forecast to be at 2.9% for 2022, 2.4% for 2023, 1.8% for 2024 and 2.1% for 2025, the end of the forecast horizon. Further rate hikes “cannot be ruled out,” the SNB said in a statement, while it remains willing to be active in the foreign exchange market “as necessary.”

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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