Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive Summary:
- SNB again expected to keep their rates policy unchanged in December, retaining an aggressive easing bias
- Board look to further ensure price stability and add “ongoing support to the Swiss economy in its recovery”
- CPI forecasts should be notched higher near-term, but pressures dissipate ahead of year-end 2022
The SNB are again expected to keep their rates policy unchanged in December, retaining an aggressive easing bias as the board look to further ensure price stability and add “ongoing support to the Swiss economy in its recovery”. With inflation projections seen below target across the forecast horizon and the ECB still several years away from a higher deposit rate, there is very little pressure on the SNB to change course at this stage.
Figure 1: CPI forecasts seen being bumped higher in near-term
Source: MNI/SNB
CPI forecasts rolled out in September were benign at best, particularly when compared to the inflation outturns currently being seen across the US and Eurozone. Recent currency strength could also be providing Switzerland with a solid exchange rate buffer to avoid the tough policy decisions being made at the ECB and Fed in the face of spiralling prices – transitory or otherwise.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.