WS #14671
The Swiss National Bank raised its 2027 inflation forecast to 0.8% and signaled readiness to intervene in FX markets, while the Swedish Riksbank indicated it would raise rates faster than previously projected if inflation persists. This dual hawkish stance from key European central banks contradicts the broader market expectation of imminent easing, reinforcing the bearish outlook for rate-sensitive assets and European growth equities.
European Hawkish Pivot
The Swiss National Bank raised its 2027 inflation forecast to 0.8% and signaled readiness to intervene in FX markets, while the Swedish Riksbank indicated it would raise rates faster than previously projected if inflation persists. This dual hawkish stance from key European central banks contradicts the broader market expectation of imminent easing, reinforcing the bearish outlook for rate-sensitive assets and European growth equities.