Swiss Franc Might Fall as SNB Rate Rises Look Limited

1014 GMT – The Swiss National Bank should raise interest rates at its meeting on June 22 but any further hikes beyond that will be limited, potentially weighing on the Swiss franc, Commerzbank says. “A lot can happen until the SNB’s next meeting in September, of course, but in view of the fact that inflation in Switzerland has recently eased more than the SNB had expected and was close to the upper limit of 0-2% at 2.2% in May means that the need for further rate hikes seems limited,” Commerzbank currency analyst Esther Reichelt says in a note. Instead, a further easing of inflation would likely increase the SNB’s tolerance for franc depreciation, which could lift EUR/CHF, she says. (renae.dyer@wsj.com)