- Price hikes are hitting parts of the economy that were previously unaffected
- Inflation has risen much more than expected and is “significantly” above target
- Other hikes cannot be excluded
- The central bank is ready to be active in the foreign exchange market
- Ensuring price stability requires the full attention of the central bank
The SNB rose 75 basis points yesterday, but many were expecting 100 basis points.
There’s no indication here how aggressive they will be here, but I don’t think markets can turn around until central bankers give some kind of indication that they are at least thinking about a break.