The Swiss National Bank (SNB) could wait to raise interest rates until September. In this case, CHF’s appreciation pressure should be softened, economists at Commerzbank report.

SNB assumes that elevated inflation is merely temporary

“So far, the SNB assumes that elevated inflation is merely temporary and that it will return to the target corridor in the medium term. If Governing Board members stick to the assessment that this is only temporary, this rather suggests that they will wait a while longer before raising their key rate.”

“The SNB could let the ECB take the first step and then follow suit in September – also in order not to exert additional appreciation pressure on the franc.”