This was out a bit early and didn't have an effect on CHF trading but it's still notable.
Swiss National Bank president Thomas Jordan in Davos said:
We cannot exclude to tighten further,” he told Bloomberg. “We are roughly at 1% now, and inflation is still above 2%. So it’s clear that some tightening is probably in the cards.”
That's not a big surprise to the market with a 50 bps hike at the March 23 priced at 68% and the remainder at 25 bps. That would bring rates to 1.50%.
On inflation, he warned about worsening dynamics.
“Inflation is much broader,” he said. “It’s everywhere in services, in rents etc. So we cannot avoid these second-round effects, but we have to make sure that they do not dominate at the end the inflationary process.”
