SNB: ACTING TO COUNTER INFLATIONARY PRESSURE

In its June monetary policy statement, the Swiss National Bank (SNB) said that they delivered another rate hike to counter elevated inflation levels.

Also read: SNB raises key deposit rate by 25 bps to 1.75%, as expected

Key quotes

Acting to counter inflationary pressure.

In the current environment, the focus is on selling foreign currency.

To provide appropriate monetary conditions, the snb also remains willing to be active in the foreign exchange market as necessary

Decrease in inflation was above all attributable to lower inflation on imported goods, in particular lower prices for oil products and natural gas.

From 2024 onwards, the new forecast is higher than in March, despite today’s increase in the SNB policy rate.

Reasons for this are ongoing second-round effects, higher electricity prices and rents, and more persistent inflationary pressure from abroad.

Through to the end of 2023, the new forecast is below that of March

Without today’s policy rate increase, the inflation forecast would be even higher over the medium term.

Growth outlook for the global economy in the coming quarters remains subdued.

At the same time, inflation is likely to remain elevated worldwide for the time being