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:
- The SNB kept policy unchanged, with the Sight Deposit Rate and main Policy Rate at -0.75%
- The Bank retained their view that the CHF is “highly valued”, repeating that the bank remains willing to intervene as necessary
- The inflation forecast is now above target for end-2022, but the bank see inflation pressures moderating over the medium term, bringing CPI back below 1.00% next year
The SNB kept policy unchanged in March, with the board looking to further ensure price stability and support the Swiss economy. They retained their language around the CHF, describing the currency as “highly valued”, again reiterating that they are willing to intervene as necessary. As expected, the CPI outlook was nudged higher, accommodating the uptick in inflation present across all developed markets currently.
This puts CPI projections above target for the first time since the COVID crisis, with CPI now seen rising to 2.2% across Q1 and Q2 this year. Despite this, the longer-term inflation forecasts moderate sharply, dipping back below 1.0% early next year, leaving the SNB with little reason to raise interest rates or tighten policy in the near future.
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.