Fitch: Inflation is unlikely to prompt a change in SNB's monpol this year

"The rise in Swiss inflation is unlikely to prompt a significant change in the Swiss National Bank's (SNB) monetary policy stance this year," Fitch Ratings argues in a recently published report.

Key quotes

The SNB is unlikely to hike policy rates before the ECB does, as the SNB seeks to avoid franc appreciation.

This stance supports growth but could potentially increase risks in the domestic banking system. 

Price growth remains subdued. Average annual inflation was 0.5% last year, the FSO said.

Although this represents a return to annual price increases after year-end CPI averaged -0.4% during 2012-2016.