SNB Maechler: Will continue to raise rates if inflation above target

The Swiss National Bank will continue to raise rates if inflation projections are seen above target according to SNB’s governing board member Andrea Maechler.

On Thursday, Maechler also noted that the battle against inflation has not been won despite a dip in Swiss inflation to 3.0% in October from 3.3% in September. In its latest inflation forecast, the SNB expects inflation to decline to 2% by the third quarter of 2023, the top end of its price stability goal which it defines as inflation of 0-2%.

The USD/CHF pair’s price is correcting the prior bearish impulse after a 150% expansion of the prior consolidative tops from the harmonic patterns neckline support area on the weekly chart.

Key Quotes

Inflation started with shocks but it’s no longer shock-driven and has the risk of being more persistent.

Will continue to raise rates if see inflation projections above target.

Important we maintain our focus on achieving price stability.

We are willing to intervene in the FX market by buying or selling as necessary, but not yet ready to reduce our balance sheet.