Franc Depreciated in Nominal and Real Terms, SNB’s Schlegel Says

(Bloomberg) — The Swiss central bank has seen a depreciation of the franc in nominal and real terms.

“In the last couple of weeks we saw a depreciation of the franc, in nominal and real terms,” Vice President Martin Schlegel said at a news conference on Friday in Zurich. He added that his acknowledgment of the franc’s move wasn’t intended as a comment on whether the currency is over- or undervalued.

Swiss National Bank chief Thomas Jordan had said last month that in the final weeks of 2023, the franc didn’t only appreciate nominally, but also in real terms. This shifted the Swiss inflation outlook down, according to Jordan.

Schlegel’s words suggest that the central bank has recognized that the trend appears to be reversing.

The SNB has kept interest rates steady since June and is largely expected to start cutting this year. Some analysts expect the move to come as early as March amid slowing inflation.

Read more: Traders Bet on Swiss Rate Cuts by March as Other Wagers Fade

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