THE SNB COULD ALREADY GO NEGATIVE IN JUNE 1/3

16 Jun

THE SNB COULD ALREADY GO NEGATIVE IN JUNE 1/3

Switzerland's economy started 2025 with a surprisingly strong first quarter, with real GDP accelerating to a robust +0.8% quarterly growth. This performance, driven predominantly by exports, surpassed analysts' expectations and represented the fastest economic expansion since Q2 2024.

Key Points

  • A surprisingly robust first quarter for the GDP
  • High risks of growth slowing in Q2
  • More nuanced and contrasting leading indicators
  • CPI and PPI indices point to deflation
  • SNB could move into negative rates in June
  • SNB may trigger weakening of the franc
  • Long-term yields approach zero again
  • Growing risks for Swiss equities