Swiss Franc the next to go down, SNB does not hike rate,
Credit Suisse sees Swiss CPI remaining under 2 pct, SNB to pause rate hikes
Sun, Dec 2 2007, 19:33 GMT
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ZURICH (Thomson Financial) - Credit Suisse expects 2008 inflation in Switzerland to remain below 2 pct, despite the sharp rise seen in November, head of fixed income/credit research Nannette Hechler said.
"For 2008 we forecast an inflation (rate) that remains in line with pricing stability as defined by the Swiss National Bank (SNB). Credit Suisse thus does not expect a sustained inflation rate of above 2 pct...," Hechler said in an interview with Swiss biweekly Finanz und Wirtschaft.
On Friday, the Swiss Federal Statistics Office said that Swiss consumer prices rose 1.8 pct year-on-year in November, the sharpest increase since May 2001.
Hechler also said she expects the SNB to leave interest rates unchanged on Dec 13.
"The insecurities regarding the impact of financial market turbulence on the real economy are not yet over. We therefore can envisage the SNB to pause its rate-hike cycle, and postpone further hikes (...) to 2008," she said.
johanna.treeck@thomson.com
jmt/jlw
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