London, Monday, 28 November 2022
A weaker dollar helped the Swiss franc rise to 0.94 per US dollar at the end of November, staying near three-month highs as Fed governors signalled less rate increases in upcoming sessions as a result of the sluggish US economy.
In response, the Swiss National Bank's hawkish signals supported the national currency.
Since current interest rates are low considering the high inflation predictions, SNB Chairman Jordan predicted that the central bank will likely tighten policy even further in its upcoming announcement.
Although price growth has recently slowed, promises of tighter policy were nonetheless made despite the fact that annual inflation in October was only 3%, significantly below both central bank estimates of 3.4% and the 29-year high of 3.5% in August.
At its most recent meeting, the SNB increased its policy rate by 75 basis points, pushing borrowing costs into positive territory for the first time since 2011.
(Report by: The Decision Maker - Finance editors)