USD/CHF continues to fluctuate.

The Swiss National Bank (SNB) raised the benchmark interest rate from 0.5% to 1.5% amid the banking sector's volatility due to Credit Suisse's liquidity issues. This rate hike is the fourth consecutive one and is in line with analysts' expectations. It may further indicate that liquidity issues in the banking sector could happen again.

Meanwhile, the Fed also voted to raise the interest rate by 0.25% to 4.75-5.00%, as expected by the market. This marks the ninth rate hike since March 2565 when the rate hike cycle began. While this rate hike is not too aggressive, it is not a non-hike either and it aligns with the market's expectations. As a result, the US dollar has weakened slightly.

The US Federal Reserve's policy rate forecast (Dot Plot) indicates that the interest rate will reach 5.1% this year, suggesting that the Fed will raise interest rates only once after this meeting. In addition, they plan to reduce the interest rate by 0.8% in 2023 and 1.2% in 2024, while the long-term interest rate remains at 2.5%. The Fed's signal suggests the end of the cycle of interest rate increases and shows confidence in the US banking system.

Meanwhile, Switzerland's inflation rate increased to 3.4% YoY in February, which is higher than analysts' expectations. Although Switzerland's inflation rate is lower than other European countries, the economy in the country is not performing well. 

According to BBC News, SNB hinted at a possible future interest rate increase if inflation does not meet its target. Many countries are closely watching the crisis of Switzerland's banking system, particularly after UBS Group AG, Switzerland's largest bank, acquired Credit Suisse, the country's oldest bank, to prevent a banking crisis similar to that in the United States.