RPT--🇨🇭❗️Cable FX Macro Weekly Note: Switzerland April Consumer Prices

**As seen in Risk In The Week report 04/29/24, subscribe at cablefxm.co.uk/reports

Swiss core consumer prices slowed to 1.0% Y/y in March, the consensus had seen inflation rising at 1.2%. The headline came in at 1.0% vs the prior 1.2% and expectations of 1.3%. An unexpected ease in prices confirmed the SNB's stance, the central bank started its rate-cut cycle in March, and the move surprised economists. This was noted by the desk at UBS as they said the SNB has taken investors off guard many times when it comes to the timing of monetary policy and the size of its policy rate changes. Looking ahead, UBS recommends risk-averse players to hedge alternative outcomes. The pace of disinflation could be reaching its limits as we could see a bid of CHF in risk-off scenarios, we have geopolitics baked while earnings could point to the next move in equities. However, an uptick in prices from current levels has a high bar for the SNB to shift its current monetary policy stance.