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Swiss National Bank tightening
The Swiss KOF leading indicator rose to 1.79 in February from an upwardly-revised 1.74 in January. From a peak of 2.40, the index signalled weaker growth until late 2006 but is now showing tentative signs of recovery and GDP acceleration from mid 2007. On Tuesday, SNB member Jordan stated that the central bank would continue the policy of normalisation which means that the bank is still looking to increase interest rates. There is a very high probability of an increase in rates to 2.25% from 2.0% at the March 15 meeting unless global financial markets go into meltdown over the next two weeks.