Our CHF Desk publishes a timely commentary on the SNB’s quarterly monetary policy decisions, covering key takeaways, market implications, and forward-looking expectations.
At a glance
- Following the ECB’s interest rate hike of 25 basis points last week, the SNB did not follow suit and instead left its key interest rate at 0.0%, as expected.
- In addition to still moderate domestic inflation, the latest developments in the Middle East, including for the first time tangible signs of possible political convergence, dampened inflation risks, which further supports the wait-and-see approach of the SNB.
- At the same time, the central bank is underlining its continued willingness to intervene on the foreign exchange market in order to stop the Swiss franc from appreciating excessively.
- Overall, the Swiss market environment thus favours ongoing stability rather than rising interest rates, which is why we do not expect any tightening of monetary policy in the foreseeable future.
