Capital Economics: The Swiss National Bank is less likely to raise interest rates than the European Central Bank

Golden Ten Data reported on March 13 that Andrew Kenningham, an economist at Capital Economics, stated in a report that, against the backdrop of rising oil and gas prices and their impact on inflation, the Swiss National Bank is almost certain to keep its policy rate unchanged at zero next week. However, the transmission effect of energy prices to inflation will be relatively mild, and the upward pressure on the Swiss franc will also suppress any inflationary impact. This means the threshold for a rate cut is very high, while the threshold for a rate hike is even higher than that of the European Central Bank. He noted that, with the current rising risk of rate hikes by the European Central Bank, the Swiss National Bank can maintain a spread of about 200 basis points with the European Central Bank without needing to lower its policy rate.