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Swiss National Bank: Sep-23

• The SNB’s decision to retain the policy rate at 1.75%, contrary to the expected hike, is indicative of a cautious approach, balancing inflation control with growth sustainability, amidst global economic moderation and persisting elevated inflation.
• The bank's vigilance on inflationary dynamics is evident, with the significant tightening of monetary policy in recent quarters serving as a countermeasure to remaining inflationary pressures. Yet, the possibility of further tightening to assure medium-term price stability has been explicitly acknowledged.
• The SNB's readiness to intervene in the foreign exchange market underscores its commitment to maintaining appropriate monetary conditions, emphasizing the interrelation between currency valuations and inflationary pressures, in a global economic landscape riddled with significant uncertainties and risks.

Switzerland PPI inflation -0.24% m-o-m in Aug-23

- Switzerland's PPI inflation in August 2023 recorded a decline of 0.24% m-o-m, marking the lowest growth since May 2023.
- The current PPI inflation is 0.18 percentage points below the one-year average and 0.34 percentage points below the long-run average, indicating a deviation from recent and historical trends, respectively.

Switzerland unemployment rate 2.0% in Aug-23

- Switzerland's unemployment rate in August 2023 reached its highest level since March 2023, indicating potential labor market challenges.
- The rise in unemployment is accompanied by low consumer confidence, a contraction in manufacturing activity, declining retail sales, and slower-than-expected GDP growth.

Switzerland GDP growth 0.02% q-o-q (consensus 0.1) in Q2-23

- Switzerland's Q2-23 GDP growth of 0.02% fell short of expectations, indicating a sluggish pace of economic expansion and the lowest growth since Q4-22.
- This subpar performance is reflected in the deviation of 0.26 percentage points from the one-year average and 0.42 percentage points below the long-run average, suggesting an overall weak economic environment.