PREVIOUS TRADING DAY EVENTS 21 Sep 2023

The Swiss National Bank SNB surprised markets by pausing its current cycle of increases.The SNB held its policy interest rate unchanged at 1.75 highlighting the fact that inflation is now lower, currently at 1.6 in August and within its target level. It was described as a hawkish pause and marked the first time the central bank has not hiked rates since March 2022.

The situation allows us to wait for now and review at the next monetary policy assessment whether the measures we have taken to date are sufficient to keep inflation within the price stability range on a sustainable basis, SNB Chairman Thomas Jordan told reporters.

Mr. Jordan still kept the prospect open of further hikes. The battle over inflation is not yet over, he said. There is still an existing inflationary pressure, and we do not exactly know whether this inflationary pressure will increase again.

The Swiss economy is currently confronted with inflation and economic risks. By refraining from raising interest rates, the SNB has weighted economic concerns more heavily than inflation risks, said Alessandro Bee, senior economist at UBS.

Source httpswww.reuters.commarketseuropeswissnationalbankholdsratessteadywillnotruleoutmorehikes20230921

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