SNB hikes by 50bps to 1.50% vs exp. 1.50% (prev. 1.00%); does not rule out further hikes; reiterates language around price stability and FX intervention

INFLATION

• Is still clearly above the range the SNB equates with price stability.
• Stronger second-round effects and the fact that inflationary pressure from abroad has increased again mean that, despite the raising of the SNB policy rate, the new forecast is higher through to mid-2025 than in December

GROWTH

• Despite the slight upturn in economic activity in recent months, growth is likely to remain modest for the rest of the year.

HOUSING

• Mortgage growth has remained largely stable in recent months, whereas there are signs of a slowdown in residential real estate prices. The vulnerabilities on the mortgage and real estate markets persist.

CREDIT SUISSE

• The measures announced at the weekend by the federal government, FINMA and the SNB have put a halt to  the crisis.

FORECASTS

Via SNB