- We are keeping interest rates low, so that inflation remains in range of price stability (target range 0-2%)
- Our interest rates are where they should be
- Whether the Franc is correctly valued, overvalued or not is not decisive for our monetary policy
- What is important is how the exchange rate changes and its effect on inflation
- We are not in situation where we would like to see lower inflation
- The inflation forecast is where we want it (0.4% on average for Q4 2025)
- FX interventions are possible
This is a pushback against negative rates speculations after yesterday’s soft Swiss CPI report. We’ve already heard many times the SNB members pushing back on negative rates as the bar for going back into NIRP (negative interest rate policy) remains very high.
This article was written by Giuseppe Dellamotta at investinglive.com.