PREVIOUS TRADING DAY EVENTS 22 June 2023

Yesterday, the Swiss National Bank raised its policy interest rate by 25 basis points, to 1.75 as expected and signalled that more tightening was likely to come. This brings the total amount of rate hikes in this cycle to 250 basis points in one year. It is clear that world central banks are not done yet with their monetary tightening campaigns to bring price rises under control. Although the U.S. Federal Reserve left interest rates unchanged last week, it signalled further hikes by the end of the year.

The decision was taken amid fears of rising inflationary pressures.

The marked decline in recent months is very welcome, Chairman Thomas Jordan of the Swiss National Bank SNB said. Nevertheless the underlying inflationary pressure has risen further.

That means most likely that tighter monetary policy is necessary to bring inflation sustainably below 2, he said, But we can also afford the more gradual approach.

Inflation projections remained high.

Inflation would most likely not stabilise but would rather go up again and we would have to fight inflation further down the road with more rate increases, he said.

Source httpswww.reuters.combusinessfinanceswisscentralbankraisesratesagainsignalsmayneeddomore20230622

The Bank of England surprised the markets with an interest rate increase by 50 basis points as a response to  significant news suggesting Britains persistently high inflation would be difficult to bring down.

The…