• Prior 0.50%
  • Rate hike is to counter increased inflationary pressure and further spread of inflation
  • It cannot be ruled out that additional rate hikes will be necessary
  • To provide appropriate monetary conditions, SNB also willing to be active in FX market as necessary
  • Sees 2022 inflation at 2.9% (previously 3%)
  • Sees 2023 inflation at 2.4% (previously 2.4%)
  • Sees 2024 inflation at 1.8% (previously 1.7%)
  • Full statement

The franc has fallen on the decision as those hoping for a 75 bps rate hike were disappointed evidently. USD/CHF moved up from 0.9255 to 0.9300 and is holding at the highs for the day currently. EUR/CHF also pushed up from 0.9845 to 0.9890 but remains largely rangebound in recent weeks.

Besides that disappointment in terms of pricing expectations, there isn't much else to really scrutinise about the SNB decision today.