The sharp fall in the Swiss franc against the euro since Christine Lagarde’s hawkish routine on Thursday will have been music to the ears of the SNB. We think the Bank will be happy to bask in the warmth of the weaker franc rather than follow ECB rate hikes which we anticipate later this year. And while SNB rate hikes in 2023 are likely, we suspect that the SNB would be content with stopping at zero, which would be consistent with a 50bp negative differential with the euro-zone. The main data releases of interest next week will be the January CPI data from Switzerland and Norway.
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