Reported 4 months ago
Swiss inflation remained steady at a high level in 2024, potentially affecting the Swiss National Bank's decision on interest rate cuts. Consumer prices rose by 1.4% in May, matching economist expectations, with factors like rent, package holidays, and petrol contributing to the increase. While the SNB anticipates a 1.4% average for the second quarter, the central bank may hold off on a rate cut due to strong economic growth and a franc depreciation. However, the currency strengthened against the euro and dollar in May, after hawkish comments from SNB President Thomas Jordan. Despite Switzerland's low inflation compared to the euro area, SNB could intervene by selling foreign exchange to counteract the softer franc.
Source: YAHOO