The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
The Swiss National Bank’s (SNB) somewhat more upbeat inflation view may not necessarily translate into early rate increases, according to a Bloomberg survey. In their first take since the SNB’s December policy meeting, when the central bank adjusted its forecasts, economists still see Switzerland’s deposit rate staying at a rock-bottom minus 0.75 percent until late 2019. A 25-basis point tightening is predicted in fourth-quarter 2019, with another in the first three months of the following year.
The SNB’s December projections showed price growth breaching its 2 percent limit in the third quarter of 2020, though President Thomas Jordan said at the time it was “very early†to talk about policy normalization. That’s partly because a more hawkish stance could boost Switzerland’s currency, weighing on inflation. “Even an indication by the SNB that they might soon change policy could already boost the Swiss franc enough to do the job†and preclude the need for a hike, said Timo Klein, senior economist at IHS Global
Insight in Frankfurt.