Capital Economics: Swiss Inflation has Eased, but Central Bank Concerns have not Subsided

Adrian Prettejohn, European economist at Capital Economics, said that the annual rate of inflation in Switzerland fell from 2.2% in May to 1.7% in June, which was basically in line with market consensus expectations, but higher than the 1.5% forecast by the Swiss National Bank at its last meeting. Indicates that the Swiss National Bank will not stop the interest rate hike cycle.
He said policy makers had highlighted concerns they believed second-round inflation risks were building, and that a month’s worth of data would do little to dispel those concerns, even though they were within the SNB‘s target range.
He added that the SNB is likely to raise rates one last time by 25 basis points in September.