Prior CHF 678B.
After a surprise rate cut from the SNB and yesterday's inflation data which printed below expectations the market is currently anticipating another rate cut in June.
Swiss foreign reserves have continued to rise since the beginning of the year. Higher reserves imply greater capacity for interventions to control currency fluctuations and can offer insights into the central bank’s expectations or plans. The surprise rate cut pushed the franc to its lowest levels in months against the euro and the U.S. dollar and suggests the bank wants to keep the currency from appreciating further after last year it reached its strongest levels seen since 2015. Some analysts believe the current levels are seen as still too strong for policymakers.
