According to Jinshi, Capital Economics economist Adrian Prettejohn said that given that Swiss inflation is in line with the SNB's forecasts and first-quarter GDP data showed a rebound in economic growth, the SNB may remain on hold at its June 20 meeting. He said in the report that inflation remained at 1.4% in May as rising rents were offset by falling core commodity prices. Inflation should fall in the coming months as surveys of service companies show that sales price pressures have normalized. But he added that the decline in service industry inflation may be less than expected and faster, which will raise doubts about whether the SNB will cut interest rates again this year.
