The Actions Of The Swiss National Bank (SNB) May Support The Strong Franc (CHF)

Against the backdrop of elevated price pressures, economists at CIBC Capital Markets expect the Swiss National Bank (SNB) to be increasingly prepared to tolerate a stronger franc.

Additional policy tightening

“In the context of elevated CPI, we can expect the SNB to remain wary of elevated price pressures feeding through into wage demands; this comes as the unemployment rate is at a 20-year low of 2.1%.”

“A central bank keen to bear down on wage growth and an overheated real estate market could prove to be more activist than the ECB, supporting a stronger CHF into 2023.”

“EUR/CHF: Q4 2022: 0.94 | Q1 2023: 0.97”