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:
- Expected to keep rates policy unchanged, retain aggressive easing bias
- Will likely shrug off recent CHF strength and retain language around currency
- CHF strength far less notable on an inflation-adjusted basis
Inflation forecasts were revised higher in December, with the SNB pinning the forecast upgrade on elevated import prices (read: oil and gas) and global supply bottlenecks. This has only exacerbated over the last three months, leaving the SNB with little choice but to raise forecasts further across the forecast horizon, and into end-2024.
This will likely result in their 2022 estimates reaching, or possibly exceeding, 2% - and effectively putting the bank above target. Nonetheless, the more medium-term inflation outlook should remain moderate, dropping back to 1% across 2023. This should allow the bank to retain their negative rates stance, leaning heavily on their FX intervention policy to ensure smooth passage of policy.
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.