Swiss 4Q GDP 0.2% q/q vs. 0.4% Expected
Franc Little-Changed After Data Release
SNB Sees Slow Inflation Rise Through 2015
Swiss GDP disappointed in the fourth quarter, showing the economy expanded 0.2 percent from the previous period to yield the smallest gain in over two years. The year-on-year growth rate unexpectedly slowed to 1.7 percent from a revised 2.1 percent in the third quarter.
The Swiss Franc showed a muted response to the release as Switzerland's low inflation continues to plague policymakers. The Swiss National Bank foresees its baseline inflation rate below 1 percent through, and well below its 2 percent target rate through the next two years. DailyFX Strategist Ilya Spivak argues that this translates into policy standstill for the time being, eroding the GDP report's market-moving potential.
USD/CHF 5-Minute Chart. February 27, 2014