Swiss Franc: One-off export surge tempers SNB response – Commerzbank
Michael Pfister at Commerzbank notes that Switzerland’s strong 1.9% quarter-on-quarter growth was driven mainly by net exports, particularly to the Euro area excluding Germany, rather than a broad-based domestic upswing.
Commerzbank's Michael Pfister highlights that Switzerland's robust 1.9% quarter-on-quarter growth was primarily fueled by net exports, especially to the Euro area, save for Germany. Acknowledging the volatility of net exports, Commerzbank only raises its 2026 growth forecast to 2% and anticipates the Swiss National Bank (SNB) concentrating on inflationary pressures rather than initiating immediate rate hikes.
The recent surge in Switzerland's second-quarter growth figures has sparked considerable interest. However, experts predict a temporary downturn in net exports in the subsequent quarter, as intermediate goods need to be re-imported. Consequently, the SNB does not seem to require an immediate rate increase in response to the renewed growth strength.
Instead, the central bank can prioritize maintaining inflation within the middle of its target range.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
