- Outlook for Swiss inflation is very uncertain, sees mainly downside risks
- Inflation still being driven by domestic services
- Will monitor situation and adjust policy if necessary
- Scenario for global economy is subject to high uncertainty (vice chair Martin)
- Inflation should continue to ease gradually over the next quarters, particularly in Europe (Martin)
- Increasing trade barriers could weaken global economic development (Martin)
- Sees developments abroad as main risk (policymaker Tschudin)
- Swiss economic situation has become considerably more uncertain (Tschudin)
The emphasis on global uncertainty fits with theme from other major central banks as well. The remarks here are mainly to reinforce their decision today. There’s nothing about exploring zero rates or negative rates, which I will believe they are disincentivised for now. USD/CHF is up 0.4% to 0.8810 currently.
This article was written by Justin Low at www.forexlive.com.