Swiss Industry Concerned Over SNB's Policy Decision Impact on Currency Shocks

Monday, 18 March 2024, 06:50

The Swiss industry is vocal about the impact of SNB's policy decisions on currency shocks and export competitiveness. Industry leaders urge SNB to factor in economic situation to soften currency shocks amidst inflation control. An unexpected decision by SNB this week could trigger a significant franc rally, with traders currently underpricing the odds of a rate move before June.

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Swiss Industry Concerns Over SNB Policy Decision

With Swiss inflation under control, the SNB may surprise markets with its upcoming policy decision, causing anxiety among the Swiss industry. Stephan Brupbacher, director of Swissmem, emphasizes the importance of considering the economic situation to mitigate currency shocks for exporters. Nicola Tettamanti, Swissmechanic president, highlights the challenges posed by a strong franc and the need for SNB support in enhancing export competitiveness.

Expectations for SNB Policy and Currency Impact

Industry Concerns: Industry leaders stress the need for SNB to balance inflation objectives with the economic landscape to assist exporters.
Export Competitiveness: Stronger euro or dollar value relative to the franc impacts industry competitiveness and potential order losses.
Rally Anticipation: A surprise SNB decision could lead to a significant franc rally, contrasting market expectations for the first rate move in June.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.