Inflation in Switzerland remains well within the SNB’s target range of 0-2%, reaching just 0.3% in February—its lowest level in nearly four years. With price pressures cooling, the central bank appears to have room for further monetary easing. However, concerns over the Swiss franc’s strength persist, as its high valuation has weighed on exporters, particularly in industries like watchmaking. The SNB may seek to offset this pressure through both rate cuts and potential interventions in the foreign exchange market.
Markets are pricing in further easing by the European Central Bank later this year, and investors remain watchful for any signals from the SNB regarding future rate cuts or intervention in the currency markets. While a 25-basis-point cut appears the most likely outcome, the SNB’s history of surprising markets means that investors will be paying close attention to the central bank’s policy statement and forward guidance for clues on the path ahead.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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