Ella 
Economists at Commerzbank discuss the SNB’s policy outlook and its implications for the Swiss franc (CHF).
Swiss price data has been trending in a positive direction for several months, and the same was true for June. Does this mean Switzerland’s inflation problems are over? Of course, it is still early days and, as the SNB has often repeated, there is a risk of second-round effects. Wages could rise further, fueling inflation again.
The SNB itself expects only a short-term decline in inflation. According to the SNB’s forecast, next year’s consumer price inflation will again be above the target range.
As such, the SNB is likely to remain vigilant and seems likely to continue its hawkish approach. In this case, it will continue to favor the strong franc. Therefore, it is still too early for EUR/CHF to rise.
