The most recent inflation data provides little cause for concern. Of course, there are upside risks for inflation and the SNB expects a renewed moderate rise in the annual rate over the coming quarters, but this is unlikely to be sufficient for a further tightening of monetary policy.

Instead, the SNB is likely to maintain its hawkish communication in view of increased uncertainty. Above all, it will continue to favour a strong Franc to limit the upside risks for inflation.

Against the background of the crisis in the Middle East, the Franc is likely to principally remain in demand as a safe haven anyway.