Swiss SNB Policy Rate (Q2) 1.75% vs. Exp. 1.75% (Prev. 1.5%): cannot be ruled out that additional rises in the SNB policy rate will be necessary

RATES

• cannot be ruled out that additional rises in the SNB policy rate will be necessary

FX

• In the current environment, the focus is on selling foreign currency

INFLATION

• Inflation has again increased over the medium-term.
• The lower oil and gas prices and the stronger Swiss franc are having a dampening effect over the short term.
• From 2024 onwards, the new forecast is higher than in March. The reasons for this are ongoing second-round effects, higher electricity prices and rents, and more persistent inflationary pressure from abroad.

GDP

• SNB expects modest growth for the remainder of the year. Subdued demand from abroad, the loss of purchasing power due to inflation, and more restrictive financial conditions are having a dampening effect.