The Swiss State Secretariat for Economic Affairs (SECO), the body in charge of formulating the government's economic projections, announced on Wednesday that it expects a 2.2% rise in consumer prices for 2023. This estimate, despite being slightly lower than the 2.3% forecast made in June, still overshoots the Swiss National Bank's objective range of 0% to 2%.
This revised prediction by SECO strengthens the argument for a prospective hike in interest rates this Thursday. The projected inflation rate surpassing the central bank's target for 2023 signals potential changes in the country's monetary policy.
The Swiss government's anticipation of inflation exceeding the central bank's goal is seen as a key factor that could influence the decision-making process regarding interest rates. The upcoming deliberations on Thursday are expected to take these recent developments into account.
It is important to note that while the revised forecast is lower than the earlier projection made in June, it still remains above the central bank's target range. This suggests that despite some adjustments, inflation pressures in Switzerland remain a concern for policymakers.
In summary, this week's announcement by SECO indicates a potential shift in Switzerland's monetary policy due to anticipated inflation rates surpassing the Swiss National Bank's target. The outcome of Thursday's interest rate discussions will provide further clarity on how policymakers plan to navigate these economic conditions.
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