Inflation expected to exceed Swiss central bank target in 2023
Consumer prices in Switzerland are likely to exceed the Swiss National Bank's target range this year, notes the Organization for Economic Cooperation and Development. Persistent inflation is prompting the central bank to tighten its monetary policy further.
In its quarterly Global Economic Outlook report, the OECD indicated that it expects inflation to peak at 2.4% this year, above the 0%-2% range equated with price stability by the Swiss central bank.
+ Five questions about the price watchdog’s inflation warnings
By 2024, however, inflation should fall back to 1.2%, added the OECD, confirming earlier forecasts.
“Monetary policy will have to be tightened again to ensure that inflation returns to its target range,” warned the economists, as the SNB is due to announce its decision on the matter on Thursday. Most experts expect the key interest rate to be raised by a further 25 basis points to 2%, but a pause in the rate hike cannot be ruled out.
Swiss growth prospects were also confirmed, with gross domestic product (GDP) expected to rise by 0.6% in 2023 and 1.2% the following year.
“Tighter financial conditions, sluggish confidence and rising inflation will weigh on household consumption and private investment. Geopolitical tensions and high uncertainty will dampen trade,” the OECD noted.
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
More
Why Switzerland is among the ten fastest-warming countries in the world
More
In Switzerland four out of ten people have a migrant background – who are they?
More
Suicides in Switzerland quadruple among older people
More
French gangs target luxury cars in Switzerland
More
Renewed controversy in Switzerland over US fighter jets – explained
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.