Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
South Korea Central Bank Signals Inflation Concerns as Oil Prices Surge 
BOJ Rate Decision in Focus as Yen, Inflation, and Nikkei Hang in Balance 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Swiss growth has surprised economists and analysts (including us), who expected a contraction in growth, slowdown in exports, weakness in manufacturing activity.
Latest data points, all positive, baffling everyone as the economy shows significant strength. Even latest PMI report showed expansion in the manufacturing sectors.
However, while economy shows strength, what baffling Swiss National Bank (SNB) policymakers is that inflation trajectory, which is showing no sign of rebound.
Blame it on whatever you like, lower oil price, weakness in commodities, weak domestic demand, stronger Franc....one thing is certain SNB is creating an image that it is out of tools or at wits end to revert deflation and risks deflationary expectations to set in, if it hasn't already.
While Swiss GDP was able to expand by 0.2%, for three months to June but inflation dropped by another -0.2% in August, down -1.4% from a year ago.
Recently SNB has stepped efforts to weaken Franc and we expect it continue such efforts more aggressively over the coming months.
Swiss Franc is currently trading at 0.976 against Dollar.
