- Prior 0.25%
- Prepared to intervene in FX market as needed
- Economic outlook for Switzerland remains uncertain
- Global economic outlook for coming quarters has deteriorated due to increased trade tensions
- Inflationary pressure has decreased compared to the previous quarter
- Will continue to monitor the situation closely and adjust its monetary policy if necessary
- Remains willing to be active in the foreign exchange market as necessary
- 2025 GDP seen at around 1.0% to 1.5% (unchanged)
- 2026 GDP seen at around 1.0% to 1.5% (previously 1.5%)
- 2025 CPI seen at 0.2% (previously 0.4%)
- 2026 CPI seen at 0.5% (previously 0.8%)
- 2027 CPI seen at 0.7% (previously 0.8%)
- Full statement
The decision is as per expected and the lower inflation forecasts will only serve to intensify the debate on negative rates before year-end. The market is pricing in nearly another rate cut before the year is over and done with. And there’s nothing here to dissuade that nor really add to it I would say. USD/CHF remains little changed at 0.8195 and EUR/CHF at 0.9400 on the day.
On a side note, the SNB has also reintroduced tiered remuneration for sight deposits as noted here.
This article was written by Justin Low at www.forexlive.com.