Swiss SNB Policy Rate (Q1) -0.75% vs. Exp. -0.75% (Prev. -0.75%); CHF classified as “Highly Valued”, willing to intervene in the foreign exchange market as necessary, in order to counter upward pressure on CHF

• Inflation: 2022 2.1% (prev. 1.0%, SECO 1.9%, KOF 1.9%), 2023 0.9% (prev. 0.6%, SECO 0.7%, KOF 0.7%).


• Retains expansionary monetary policy.


• Higher commodity prices will lift inflation further in the short term.

Via SNB

Reaction details (08:35)

• Marginal CHF strength was observed in the wake of the decision.

Analysis details (08:40)

• Overall, as expected from the SNB with policy parameters maintained. The most interesting alteration was the upgrade to inflation forecasts with 2022 and 2023 forecasts lifted notably above the prior and above what we have seen from SECO and the KOF. Such an upgrade is interesting as, on face value, it lessens the SNB's argument that CHF appreciation is due to inflation differentials; however, it is worth bearing in mind that inflation readings elsewhere are significantly above those seen/expected in Switzerland.

24 Mar 2022 - 08:30- Fixed IncomeImportant- Source: Reuters