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:
- Unexpectedly raised rates by 50bps to -0.25%, and indicated that further rate rises could come
- Bank drop their language concerning CHF valuation, introducing more two-way risk to the currency
- Inflation forecast above target throughout 2022, before dipping back below 2.0% in 2023
Jordan and the board took markets by surprise on Thursday, raising rates by 50bps – the first policy tightening in Switzerland for 15 years. On top of the unexpected rate rise, the SNB pledged further tightening would come if required, and dropped their valuation view on the CHF, suggesting the bank will allow for more CHF strength in the medium-term.
This month’s decision shows the SNB are shifting from a passive, to a much more active approach to policy. This puts markets on watch for further action from the board this year – evident in the acceleration of market pricing that now sees a further 50bps hike (bringing rates out of negative territory) at September’s quarterly meeting.
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.