The CHF/NOK currency pair held in proximity to a 2-month high of 12.0270 on Tuesday ahead of the outcome of Norges Bank’s and the Swiss National Bank’s policy meetings.
Norges Bank is expected to leave its key policy rate without change at 4.25% at its June 18th meeting.
In May, the central bank unexpectedly raised its policy rate by 25 basis points to 4.25%, as it emphasized inflation remained too high and was likely to stay elevated because of the ongoing Middle East war.
Policy makers noted that a higher policy rate was necessary to drive inflation back to target within a reasonable timeframe.
Norges Bank had said it still projected a policy rate between 4.25% and 4.50% by year-end.
Meanwhile, the Swiss National Bank is expected to keep its policy rate without change at 0% at its June 18th meeting.
Low inflation has given policy makers room to stay cautious. Annual consumer price inflation in Switzerland held at 0.6% in May. While this print matched the prior reading and represented the highest level since late 2024, it fell short of the 0.8% consensus estimate, prompting market participants to reassess the likelihood of a near-term SNB rate hike.
The SNB’s latest projections point to average inflation of 0.5% in 2026 and 2027, and of 0.6% in 2028. This suggests that policy makers see little need for tighter policy.
The SNB has also reaffirmed its readiness to intervene in the Forex market if needed.
The CHF/NOK currency pair was last up 0.05% on the day to trade at 12.0040.
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