The Swiss National Bank (SNB) said in its quarterly bulletin on Wednesday that the global growth momentum and the outlook for the coming quarters remain subdued, reaffirming the previous forecast of a 1% GDP growth in Switzerland in 2023.
The SNB noted that annual inflation fell to 2.2% in May but said it "remained above the range consistent with price stability." Short-term inflation expectations are still elevated, while longer-term expectations are "within the range of price stability."
The bank added that the Swiss franc appreciated moderately in trade-weighted terms in the first quarter, and equity prices rose, but long-term bond yields declined slightly. Residential real estate prices saw softer growth, and monetary aggregates contracted, but lending growth remained robust.
