Swiss SNB Policy Announcement (Jun) 0.00% vs. Exp. 0.00% (Prev. 0.00%); readiness to intervene in FX is higher. Monetary policy is appropriate to keep inflation within the range consistent with price stability.

FX

• "If necessary, the SNB has an increased willingness to intervene in the foreign exchange market." (prev. "Given the conflict in the Middle East, the SNB's willingness to intervene in the foreign exchange market has increased")
• "The SNB thereby counters a rapid and excessive appreciation of the Swiss franc, which would jeopardise price stability in Switzerland."(Reiteration)

Domestic Economy

• Inflation has risen in recent months as a result of higher energy prices.
• "Medium-term inflationary pressure, however, is virtually unchanged compared with the last monetary policy assessment." (prev. "Medium-term inflationary pressure, however, has remained virtually unchanged since the last monetary policy assessment.")
• GDP growth was solid in the first quarter.
• Unemployment has risen somewhat since the last monetary policy assessment.
• Economic activity in Switzerland has proved to be resilient.

Forecasts

• "In its baseline scenario, the SNB anticipates that inflation worldwide will remain elevated over the coming quarters due to the higher raw material prices. In addition, global economic growth is likely to be more moderate in the short term than in the previous quarters. However, growth is likely to pick up again in the medium term."
• On the shorter-term inflation forecast increase: "due to the rise in raw material prices and higher inflation abroad".
• On inflation being expeted to decline somewhat from H1-2027: "This decrease is due to the impact of higher energy prices being likely to ease over time."