SNB's Jordan: There is a “great probability” that the SNB will need to tighten monetary policy
|Swiss National Bank Chairman Thomas Jordan who hinted recently that further interest rate hikes were on the way from the central bank, saying "determined action" is required to check rising prices has said in trade today there is a "great probability" that the SNB will need to tighten monetary policy further as inflation is likely to remain elevated for a while.
He also said the nominal appreciation of the Swiss franc is helping guard against inflationary pressure. Jordan had said last week the SNB was prepared to take "all measures necessary" to bring inflation back down to its 0-2% target range and that current monetary policy was not restrictive enough to do the job.
Key quotes
In 2023, see swiss growth weaker than this year.
Inflation in Switzerland is likely to remain elevated for a while, though lower than in other advanced economies.
See limited second-round wage effects in Switzerland.
SNB still has credibility in eyes of businesses that inflation will moderate.
USDCHF update
Meanwhile, USDCHF's downside is decelerating and the M-formation could be a significant feature for the week ahead as a reversion pattern that is kicking in at a 150% range expansion of the first week of business conducted in November:
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