The publication of the Swiss inflation rate took a bit of a back seat last week. Economists at Commerzbank analyze Franc’s outlook after the the report was not particularly spectacular.
Inflation development provides little cause for concern for SNB
The most recent inflation data provides little cause for concern. Of course, there are upside risks for inflation and the SNB expects a renewed moderate rise in the annual rate over the coming quarters, but this is unlikely to be sufficient for a further tightening of monetary policy.
Instead, the SNB is likely to maintain its hawkish communication in view of increased uncertainty. Above all, it will continue to favour a strong Franc to limit the upside risks for inflation.
Against the background of the crisis in the Middle East, the Franc is likely to principally remain in demand as a safe haven anyway.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.