Swiss inflation in February surprised sharply to the upside. So that, it is unlikely that the Swiss National Bank (SNB) will end its cycle of increases or allow a significant depreciation of the francreport economists from commerzbank.
Swiss inflation surprise
“Consumer price inflation rose to 3.4% in February. Core inflation also continued to rise to 2.4%, up from 2.2% previously.”
“In light of the recent inflation data, the SNB is likely to raise its key rate again, with a new increase of 50 basis points quite possibleaccompanied by hard-line comments”.
“The SNB will probably still want to prevent the franc from weakening, so as not to create additional pressures on inflation. So if the CHF were to depreciate, the SNB would likely intervene in the forex market.”
“Even though the ECB is supporting the euro with its hawkish comments, the SNB is likely to do the same, raising rates itself and making hawkish comments, as well as intervening against franc depreciation if necessary. This means that it is probably too soon for a sustainable jump above parity in the EUR/CHF.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
