UBS economists are adjusting their inflation expectations for Switzerland downwards. After inflation unexpectedly fell in November, the bank now expects the Swiss National Bank (SNB) to cut interest rates for the first time in early summer.
The forecast for average annual inflation in 2024 will be reduced to 1.6% from the previous 2.0%, according to an assessment by the major bank's Chief Investment Office on Wednesday.
The bank is confident that inflationary pressure has eased in various components of the consumer price index, such as food, household goods, transport and restaurants and hotels. In addition, below-average growth is expected in Switzerland in the near future, which should further cushion inflationary pressure, as will the strong Swiss franc and falling inflation in the Eurozone. ...