On 16 June 2022, the Swiss National Bank (SNB) surprised markets with a 50 basis point rise to its policy rate. The move marks the first time Switzerland’s central bank has raised rates since 2007. Without today’s SNB policy rate increase, the inflation forecast would be significantly higher, said the central bank. The chart below shows Swiss inflation rising above 3% without a rate rise (red line). In addition, the central bank made no mention, as it typically does, of the franc being highly valued.

Source: Le News June 16, 2022 21:41 UTC