SNB: Acting to counter inflationary pressure

Acting to counter inflationary pressure.

In the current environment, the focus is on selling foreign currency.

To provide appropriate monetary conditions, the snb also remains willing to be active in the foreign exchange market as necessary

Decrease in inflation was above all attributable to lower inflation on imported goods, in particular lower prices for oil products and natural gas.

From 2024 onwards, the new forecast is higher than in March, despite today’s increase in the SNB policy rate.

Reasons for this are ongoing second-round effects, higher electricity prices and rents, and more persistent inflationary pressure from abroad.

Through to the end of 2023, the new forecast is below that of March

Without today’s policy rate increase, the inflation forecast would be even higher over the medium term.

Growth outlook for the global economy in the coming quarters remains subdued.

At the same time, inflation is likely to remain elevated worldwide for the time being.

Swiss GDP growth was solid in the first quarter of 2023.

It expects modest growth for the remainder of the year.

Scenario for the global economy remains subject to large risks.

In particular, the high level of inflation in some countries could be more persistent than expected.

The forecast for switzerland, as for the global economy, is subject to high uncertainty.

Overall, GDP is likely to grow by around 1% this year.

Main risk is a more pronounced economic slowdown abroad.

Unemployment will probably rise slightly, and the utilisation of production capacity is likely to decline somewhat.

As regards the real estate market, price growth for single-family houses and privately ownedapartments has slowed in recent quarters, while prices for apartment buildings have declined.

The vulnerabilities on the mortgage and real estate markets persist.

Mortgage growth has remained largely unchanged.